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FREIGHT    RATES 

SOUTHERN  TERRITORY 


ADDISON  R.   SMITH 

Third  Vice-President 
Louisville  &  Nashville  Railroad 


lasalle  extension  university 

CHICAGO 


Copyright,   1914 

LaSalle  extension  university 


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in 


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CONTENTS 


p\  Introduction 1 

r  \  I.      DeVEIjOPMENT  OF  RaTE  STRUCTURES 

Introduction 3 

Competition 4 

Measure  of  Rates 10 

II.     Definitions  of  Certain  Traffic  Terms  and  Terri- 
torial Descriptions 

Ohio  River  Crossings 12 

Mississippi  River  Crossings 12 

Eastern  Cities 13 

Seaboard  Territory 13 

South  Atlantic  Ports 1? 

i:.  Gulf  Ports 13 

Potomac  Gateways  14 

Virginia  Cities  14 

Southeastern  Territory 14 

Carolina  Territory 15 

Mississippi  Valley  Territory 16 

^'  Kentucky-Tennessee  Territory 17 

4-  III.     The  Southern  Basing-Point  System 

;-  The  History 18 

J  Common  Points  and  Basing  Points 30 

^  Competition  in  Rate-Making 37 


^  IV.     Water  Transportation  in  Southern  Territory 

Ji  Expenditures  of  the  National  Government 48 

■^^  "Water  Service  Between  North  Atlantic  Ports  and 

^^  South  Atlantic  and  Gulf  Ports 51 

Shipments    from    Principal    South    Atlantic    and 

Gulf  Ports 57 

Number  of  Vessels  and  Tonnage  in  the  Southeast . .   58 

Principal  Navigable  Streams 59 

Tonnage  on  Different  Rivers  During  1910 60 

Water  Transportation  at  Present  Compared  with 
That  of  the  Past 60 


1  ii;i.i-l'l 


oia 


EXPLANx\TORY    NOTE 

As  the  author  of  the  treatise  on  ''Freight  Rates: 
Southern  Territory"  was  preparing  his  work  on  that 
subject  in  the  spring  of  1914,  the  Interstate  Commerce 
Commission  announced  its  decision  in  regard  to  the  peti- 
tions of  the  carriers  in  this  territory  for  authority  to 
violate  the  provisions  in  the  fourth  section  of  the  Act  to 
Regulate  Commerce,  the  so-called  ''long-and-short-haul 
clause."  In  some  cases  these  petitions  were  denied  and 
in  other  cases  they  were  allowed,  involving  to  some 
extent  the  rates  to  every  community  in  this  territory. 

The  importance  of  this  decision  may  be  seen  from  the 
fact  that  while  the  Commission  has  already  granted  the 
carriers  a  six  months'  extension  of  time  (until  April  1, 
1915)  to  comply  with  its  order  in  this  case,  it  is  stated  by 
well-informed  persons  that  it  will  be  impossible  to  com- 
plete the  work  by  that  time  and  a  further  extension  from 
that  date  will  be  necessary. 

For  these  reasons  it  has  been  deemed  advisable  to 
treat  the  rate  adjustments  employed  in  this  territory  as 
they  exist  rather  than  to  attempt  to  forecast  the  ultimate 
results  of  compliance  with  the  order,  and  a  due  allowance 
should  be  made  for  discrepancies  between  the  basis  given 
in  this  work  and  such  new  rates  as  may  be  published  in 
the  future. 

It  is  not  anticipated,  however,  that  the  value  of  this 
treatise  will  be  affected  to  a  great  extent  until  the  order 
of  the  Commission  has  been  fully  complied  with. 

L.  E.  U. 


FREIGHT  RATES 

SOUTHERN  TERRITORY 


INTRODUCTION 

The  term  '^ Southern  Territory,"  as  it  is  used  herein, 
includes  that  territory  lying  south  of  the  Ohio  and 
Potomac  rivers  and  east  of  the  Mississippi  River.  For 
rate-making  purposes  this  territory  is  sub-divided  into 
four  sections — the  Southeastern  (wliich  is  the  largest  in 
poijnt  of  area,  railroad  mileage,  and  volume  of  traffic),  the 
Mississippi  Valley,  the  Carolina,  and  the  Kentucky- 
Tennessee.  This  sub-division  came  about  through  varia- 
tions in  the  geographical  and  competitive  conditions, 
as  well  as  in  the  separate  interests  of  the  several  rail- 
roads serving,  respectively,  these  sections. 

Through  this  territory  there  extend  from  west  to  east, 
the  lines  of  the  Norfolk  and  Western  Railway,  the  Chesa- 
peake &  Ohio  Railway,  and  certain  branch  lines  of  rail- 
roads operating  north  of  the  Ohio  and  Potomac  rivers, 
as  well  as  some  independent  lines  whose  outlets  are  via 
these  northern  roads.  The  adjustments  of  the  rates  on 
such  roads  are  entirely  under  the  rate  bases  applying 
to  the  railroads  north  of  the  Ohio  and  Potomac  rivers, 
and  it  is  only  the  lines  of  the  railroads  lying  south  of  the 
Norfolk  and  Western  Railway,  including  those  which  run 
from  the  north  to  the  south  and  cross  these  others  at 

1 


2     •  INTRODUCTION 

light  angles,  whose  adjustments  are  dealt  with  in  this 
treatise. 

Within  the  Southern  Territory  the  Southern  Classifi- 
cation is  generally  employed,  except  that  certain  state 
railroad  commissions  have  adopted  for  the  government 
of  intrastate  traffic  separate  classifications,  which,  how- 
ever, are  founded  upon  the  Southern  Classification. 

There  are  also  used  locally  by  individual  lines  certain 
exception  sheets,  which,  substantially  in  effect,  produce 
lines  of  commodity  rates.  Through  or  joint  rates  from 
points  outside  the  Southern  Territory  to  destinations 
therein,  with  very  few  exceptions,  are  also  governed  by 
the  Southern  Classification.  The  treatise  on  ''Freight 
Classification"  explains  quite  fully  the  application  of  the 
Southern  Classification. 

In  this  treatise  the  influences  that  have  produced  the 
freight  rate  structure  in  the  Southern  Territory  will  be 
pointed  out,  and  the  relationship  of  rates  under  this 
structure,  as  they  are  exemplified  by  existing  tariffs, 
will  be  shown  in  their  main  features.  There  will  also 
be  outlined  the  basis  of  rate  construction  between  places 
in  this  territory  and  places  beyond  the  border  thereof. 


CHAPTER  I 
development  of  rate  structures 

1.  Inteoduction 

While,  generally  speaking,  rates  in  Southern  Territory 
are,  as  elsewhere,  proportionate  to  the  length  of  the  haul, 
it  may  be  said  that  distance  is  not  the  main  factor  under 
which  the  rate  fabric  has  been  constructed;  in  fact,  this 
fabric  has  grown  up  under  the  stress  of  competitive  in- 
fluences as  developed  by  the  competition  of  rail  carriers 
with  water  carriers,  rail  carriers  wdth  rail  carriers,  mar- 
kets with  markets,  commodities  with  commodities,  and 
often  under  the  pressure  of  public  agitation  or  govern- 
mental authorities  not  in  direct  control. 

It  may  be  said  that  the  basic  principle  of  rate  construc- 
tion is  the  mileage  or  graduated  local  tariffs  of  the 
respective  lines  handling  traffic  between  two  places  in 
the  territory — a  single  tariff  where  there  is  a  single-line 
haul,  and  a  combination  of  rates  under  the  local  tariffs 
of  the  interested  line  where  there  is  more  than  a  one- 
line  haul.  Variations  from  this  basic  principle — always 
under  lower  figures — have  been  produced  by  the  com- 
petitive influences  referred  to. 


4    FREIGHT  RATES:  SOUTHERN  TERRITORY 

Taken  as  a  whole,  the  present-day  rate  adjustment  in 
the  South  produces  a  relationship  between  places  in  a 
given  section  of  the  territory  and  between  one  section 
and  another.  This  adjustment  is  widely  divergent  from 
that  observed  in  Central  Freight  Association  and  Trunk 
Line  territories,  where  scales  of  rates  proportionate  to 
distance  and  a  percentage  system  of  relationship  (one 
or  the  other  or  both)  is  practically  universally  observed. 
Nor  is  there  any  general  practice  of  grouping  geograph- 
ical districts  and  of  applying  the  same  rates  to  all  places 
in  a  given  district,  such  as  is  observed  in  making  rates 
to  Texas  territory;  in  fact,  it  cannot  be  said  that  there 
is  any  resemblance  between  the  Southern  rate  fabric  and 
that  in  any  other  section  of  the  country,  except  a  few 
long-distance  adjustments  in  Western  Territory. 

2.  Competition 

(a)  Competition    between    Water    Carriers    and    Rail 

Carriers 

By  far  the  most  potent  of  the  competitive  influences 
which  served  to  develop  the  present-day  rate  system  in 
the  South  is  the  water  transportation,  most  of  which  is 
available  throughout  the  year.  The  Atlantic  Ocean  on 
the  east,  the  Gulf  of  Mexico  on  the  south,  the  great  arteries 
of  the  Mississippi  River  on  the  west,  and  the  Ohio  River 
on  the  north,  together  with  the  numerous  smaller  navi- 
gable streams  piercing  almost  to  the  center  of  the  terri- 
tory, all  furnish  ready  means  of  water  transportation, 
both  by  regular  and  tramp  lines  of  boats  as  well  as  by 
boats   operated   in   furtherance   of  minor   and   private 


DEVELOPMENT  OF  RATE  STRUCTURES      5 

interests.  The  rates  made  by  the  water  carriers,  both 
between  river  points  and  between  seaside  points,  are 
invariably  less  than  the  scales  of  rates  employed  by  the 
rail  carriers.  Wherever,  therefore,  there  is  any  consid- 
erable tonnage  involved,  it  will  be  found  that  the  rail 
rates  are  more  or  less  depressed  below  the  level  of  those 
usually  made  for  like  distances  between  places  not 
affected  by  water  transportation. 

A  study  of  the  map  ^  will  show  the  navigable  waters 
reaching  far  into  the  interior,  most  of  them  being  opera- 
tive, except  for  very  short  periods  caused  by  floods,  from 
nine  to  twelve  months  in  the  year.  The  government  is 
rapidly  improving  channel  conditions  in  these  rivers,  so 
that  the  time  is  not  far  distant  when  all  of  them  will  be 
navigable  to  boats  of  a  capacity  proportionate  to  the  size 
of  the  river  and  to  the  traffic  thereon,  during  the  entire 
year. 

The  Potomac  Eiver  is  navigable  to  Washington,  D.  C, 
the  James  River  to  Richmond,  the  Cape  Fear  River  to 
Fayetteville,  N.  C,  the  Pedee  River  to  Cheraw,  S.  C,  the 
Santee  River  to  Columbia,  S.  C,  the  Savannah  River  to 
Augusta,  Ga.,  the  Altamaha  and  Ocmulgee  rivers  to 
Macon,  Ga.,  the  Apalachicola  and  Chattahoochee  rivers 
to  Columbus,  Ga.,  the  Flint  River  to  Albany,  Ga.,  the 
Alabama  River  to  Montgomery,  Ala.,  the  Tombigbee 
River  to  Demopolis,  Ala.,  and  the  Pearl  River  to  Jackson, 
Miss.  The  Yazoo  River  and  its  tributaries  keep  open 
the  so-called  delta  section  of  Mississippi,  by  water,  to 
the  outside  world.  The  Tennessee  River  is  operative 
from  its  mouth  to  Knoxville.  The  Cumberland  River 
is  navigable  as  far  up  as  Burnside,  Ky.    Navigation  in 

1  Map  11  of  the  Atlas  of  Traffic  Maps. 


6    FREIGHT  RATES:  SOUTHERN  TERRITORY 

the  Green  River  as  far  as  Mammoth  Cave,  Ky.  (with 
branch  communication  by  means  of  the  Barren  River  to 
Bowling  Green,  Ky.)  is  made  possible  during  the  entire 
year  as  a  result  of  the  damming  and  locking  of  the  stream. 
The  Kentucky  River  is  navigable  from  Carrollton,  Ky.,  to 
High  Bridge,  Ky.  In  addition,  there  are  some  navigable 
stretches  of  water  in  the  interior,  such  as  on  the  Coosa 
River  between  Rome,  Ga.,  and  Gadsden,  Ala.  Govern- 
mental improvements,  in  time,  will  doubtless  connect 
these  isolated  stretches  of  navigable  water.  In  truth, 
governmental  reports  show  that  out  of  36,796  miles  of 
navigable  water  in  the  United  States  no  less  than  16,722 
miles  (45  per  cent)  serve  the  Southern  Territory. 

All  the  inland  waterways  referred  to  have  been  used 
to  a  greater  or  lesser  extent  at  various  periods  during 
the  settlement  of  the  territory  surrounding  them  and 
the  commercial  and  industrial  development.  In  the  case 
of  most  of  them,  boat  transportation  was  greater,  rela- 
tively, at  the  time  when  the  main  courses  of  the  exchange 
and  distribution  of  commodities  was  between  and  through 
cities  and  towns  connected  by  these  streams  than  it  is 
at  the  present  time.  Naturally,  the  development  of  in- 
dustry and  trade  of  inland  towns  has  comparatively 
lessened  the  volume  of  the  traffic  to  move  via  the  water- 
ways. Nevertheless,  they  are  used,  on  the  whole,  at  this 
time,  and  to  a  very  great  extent,  for  the  transportation  of 
commodities  between  water-side  places  and  places 
reached  conveniently  through  these.  Also,  the  potential- 
ity of  this  character  of  competition  remains  even  when 
boat  transportation  has  receded  to  small  proportions, 
and  it  serves  to  keep  the  rail  rates  depressed  to  the  level 
to  which  they  have  been  brought  by  the  active  competi- 
tion. 


DEVELOPMENT  OF  RATE  STRUCTURES  ^ 

(h)  Market  and  Sectional  Competition 

A  second  factor  of  great  importance  in  the  develop- 
ment of  the  Southern  rate  structure  has  been  that  of  com- 
petition between  market  and  market  or  section  and 
section.  In  reality,  this  form  of  competition  is  one  be- 
tween the  railroads  themselves,  because  in  recognizing 
such  each  was  developing  its  separate  interests.  The 
benefit,  from  the  public's  standpoint,  was  the  expansion 
of  trade  competition.  A  carrier  whose  geographical 
location  is  such  that  it  was  interested  in  the  handling  of 
traffic  from  the  East  and  which  crosses  a  line  whose  loca- 
tion caused  its  main  interest  to  lie  in  the  movement  of 
traffic  from  the  Central  West,  would  find  that  if  it  did 
not  adjust  its  rates  so  as  to  enable  the  consumers  and 
distributors  at  the  crossing  place  to  purchase  supplies 
in  the  East,  it  would  have  very  little  traffic  to  move  into 
the  junction,  and  would  have  to  be  content  with  the  rev- 
enue on  local  hauls  from  the  junction  of  the  commodities 
brought  into  the  distributing  point  by  the  western  line. 
Also,  the  natural  jealousy  existing  between  one  producing 
or  concentrating  place  or  section  and  another  place  or 
section  caused  the  producers  and  shippers  therein  to  use 
constant  pressure  on  the  particular  railroad  or  railroads 
serving  them  to  yield  the  lowest  rates  they  could  secure, 
so  that  they  might  compete  fairly  or  hold  the  trade  at 
given  destinations  which  were  also  served  by  carriers 
reaching  other  producing  places  and  sections.  Thus, 
while  it  was  quite  to  the  interest  of  the  carriers  to  see 
that  their  rates  were  adjusted  in  a  proper  relationship 
between  their  direct  or  indirect  competitive  points  and 
those  of  other  railroads,  they  were  not  allowed  to  over- 


8    FEEIGHT  RATES:  SOUTHERN  TERRITORY 

look  or  forget  these  interests,  because  they  were  identical 
with  those  of  their  patrons. 

Moreover,  in  the  development  of  the  rates  under  the 
influences  just  mentioned,  there  was  the  strong  factor 
of  active  railroad  competition  in  its  truer  meaning.  In 
adjusting  their  rates  to  meet  fairly  the  necessities  of 
one  market  competing  with  another,  there  resulted  nat- 
urally wide  differences  of  opinion  between  the  traffic 
managers,  each  seeking  to  promote  the  commercial  in- 
terests of  the  particular  section  served  by  his  railroad. 
Naturally,  this  caused  demands  for  relative  adjustments, 
to  which  opposing  traffic  managers  would  not  agree.  All 
of  these  things,  in  the  course  of  time,  became  settled  after 
numerous  and  destructive  rate  wars,  mutual  concessions 
and  arbitrations.  The  concessions  and  arbitrations  fre- 
quently had  to  be  worked  out  on  lower  planes  or  measures 
of  rates  than  doubtless  would  have  been  the  case  had 
any  particular  railroad  or  group  of  railroads  been  able 
to  dominate  the  situation. 

(c)  Effects  of  Competition 

The  construction  of  railroad  mileage  during  the  period 
of  the  greatest  development  and  settlement  of  the  present- 
day  structure  was  very  rapid — much  greater  than  was 
justified  by  the  traffic  then  to  be  found.  The  struggle  for 
any  business  that  was  being  offered  was  of  the  keenest, 
as  the  very  lives  of  the  corporations  depended  upon  get- 
ting all  of  the  traffic  that  could  be  secured.  Such  a  con- 
dition naturally  tended  against  stability  of  rates  and 
adjustments  and  lent  itself  readily  to  the  two  factors 
just  spoken  of,  namely,  (1)  competition  between  water- 
ways and  railways  and  (2)  competition  between  markets 


DEVELOPMENT  OF  BATE  STRUCTURES      9 

and  markets  or  sections  and  sections.  Notwithstanding 
this,  with  the  exception  of  a  very  few,  every  railroad 
corporation  that  existed  prior  to  1890  had  gone  through 
the  bankruptcy  courts  one  or  more  times. 

(d)  Long-Distance  Rates 

There  were  various  other  factors,  important  in  the 
direct  result  but  more  or  less  local  in  their  application, 
which  become  apparent  in  a  detailed  analysis  of  the 
present  rates,  such  as  the  making  of  a  lower  rate  than 
what  might  be  termed  a  normal  rate  for  a  considerable 
haul,  to  enable  a  commodity  to  be  marketed  against  a 
producer  at  the  destination  or  much  nearer  the  destina- 
tion. In  the  case  of  the  latter,. the  longer-haul  rate  is 
usually  less,  in  proportion  to  distance  or  cost  of  handling, 
than  the  shorter  rate.  There  is  also  the  competition  of 
one  commodity  with  another  that  is  of  a  similar  nature. 
Numerous  other  examples  of  the  kind  might  be  cited. 

(e)  Competition  with  Northern  Railroads 

Another  condition  which  had  a  strong  bearing  in 
determining  the  level  of  rates  between  points  where  the 
influence  extended,  was  the  strong  trunk  line  railroads 
running  between  the  East  and  West  along  the  northern 
boundary  of  this  territory  and  furnishing  transportation 
at  rates  much  below  the  level  of  those  maintained  in  prac- 
tically every  other  section  of  the  country.* 

2  Chesapeake     &     Ohio     Railway,     Pennsylvania     Railroad,     Balti- 
more &   Ohio   Railroad,   and   Norfolli   and   Western   Railway. 


10         FREIGHT  RATES:  SOUTHERN  TERRITORY 

(f)  Effects  of  Rate-Cuttmg 

While,  in  the  past,  rate-cutting  prevailed  to  some  extent 
in  the  South,  it  was  far  less  comprehensive  than  in  other 
sections  of  the  country.  As  a  rule,  it  was  confined  to 
certain  commodities  and  did  not  affect  many  places  at  a 
time ;  rarely  did  a  railroad  cut  the  rates  on  all  of  its  com- 
petitive traffic.  While  such  rate-cutting  had  an  important 
effect  on  the  business  of  other  lines  at  the  time,  still 
the  volume  of  the  traffic  affected,  as  compared  with  the 
total,  was  always  small.  The  rate  wars  mentioned,  or 
rate-cutting,  have  had  their  effect  upon  the  rate  structure 
of  the  South,  but  such  effect  has  not  been  material,  as 
compared  with  the  other  influences,  in  making  the  level 
of  the  rates  lower  in  any  particular  section  or  between 
any  places  than  it  might  otherwise  have  been. 

3.  Measure  of  Rates 

A  word  may  be  said  with  respect  to  the  measure  of  the 
rates  applying  throughout  the  Southern  Territory,  both 
for  local  and  competitive  hauls  and  for  the  long  as  well 
as  short  distances.  These  rates,  in  comparison  with  those 
existing  ixi  Central  Freight  Association  and  Trunk  Line 
territories  and  between  those  territories,  appear  very 
high.  For  similar  distances,  however,  in  the  various  sec- 
tions west  of  the  Mississippi  River  and  particularly  west 
of  the  Missouri  River,  the  comparison  is  much  more 
favorable  to  the  lines  in  the  South.  The  Southern  rail- 
roads claim  that,  taken  as  a  whole  and  considering  the 
operating  conditions  and  volume  of  traffic,  the  rates  com- 
pare very  favorably  with  those  in  any  section  of  the  coun- 
try, including  the  North  and  East.    An  examination  of 


DEVELOPMENT  OF  RATE  STRUCTURES  11 

the  results  of  operation  as  reported  by  these  various 
railroads  demonstrates  that  they  cannot  afford  to  op- 
erate generally  any  lower  rates  than  those  in  use  at  the 
present  time. 


CHAPTER  II 

DEFINITIONS    OF   CERTAIN   TRAFFIC    TERMS   AND   TERRI- 
TORIAL DESCRIPTIONS 

To  facilitate  a  clearer  understanding  of  succeeding 
statements,  the  following  definitions  and  descriptions, 
which  are  commonly  employed  by  Southern  railroads  in 
the  technical  work  of  rate  construction  and  which  more 
or  less  frequently  appear  in  their  tariffs,  are  given : 

1.  Ohio  River  Crossings 

The  Ohio  River  Crossings  are  cities  through  which  the 
trafiic  of  the  North  and  West  passes  to  and  from  the 
South,  viz:  Cincinnati,  0.,  Covington,  Newport,  Louis- 
ville, Henderson,  Paducah,  and  Columbus,  Ky.,  Jeffer- 
sonville.  New  Albany,  and  Evansville,  Ind.,  Brookport, 
Cairo,  and  Thebes,  111.,  and  Belmont,  Mo.  Most  of  these 
cities  are  located  on  the  Ohio  River.  Thebes,  Belmont, 
and  Columbus,  however,  are,  in  fact,  on  the  Mississippi 
River,  but  being  in  the  geographical  district  of  Cairo 
they  take  the  same  rates  and  are  included  in  the  category 
of  the  Ohio  River  Crossings. 

2.  Mississippi  River  Crossings 

The  Mississippi  River  Crossings  are  St.  Louis,  Mo., 
East  St.   Louis,   111.,   Memphis,   Tenn.,   Greenville   and 


12 


DEFINITIONS  AND  DESCRIPTIONS  13 

Vicksburg,  Miss.,  and  New  Orleans,  La.    The  latter  city 
is  also  classed  as  a  Gulf  port. 

3.  Eastern  Cities 

The  Eastern  Cities,  so-called,  are  Boston,  Mass., 
Providence,  R.  I.,  New  York,  N.  Y,,  Philadelphia,  Pa.,  and 
Baltimore,  Md. 

4.  Seaboard  Territory 

Seaboard  Territory  generally  embraces  all  points  on 
and  east  of  a  line  beginning  at  Toronto,  Ont. ;  thence 
via  the  shore  of  Lake  Ontario,  Hamilton  to  Niagara; 
thence  via  Niagara  River,  including  both  banks  of  said 
river  to  Buffalo;  thence  via  an  imaginary  line  through 
Oil  City,  Pa.,  to  Pittsburgh,  Pa. ;  thence  to  Wheeling,  W. 
Va. ;  thence  via  an  imaginary  line  through  Charleston, 
W.  Va.,  to  Bristol,  Tenn. ;  and  thence  eastward  via  the 
southern  boundary  of  the  state  of  Virginia  to  the  Atlantic 
Ocean.  On  certain  traffic  this  territory  does  not  include 
tlie  Western  Termini  points. 

5.  South  Atlantic  Ports 

The  South  Atlantic  Ports  are  Charleston,  Beaufort, 
and  Port  Royal,  S.  C,  Savannah  and  Brunswick,  Ga.,  and 
Jacksonville  and  Fernandina,  Fla. 

6.  Gulf  Ports 

The  principal  Gulf  ports  are  New  Orleans,  La.,  Gulf- 
port,  Miss.,  Mobile,  Ala.,  and  Pensacola,  Apalachicola, 
Tampa,  and  Key  West,  Fla. 


14        FREIGHT  RATES:  SOUTHERN  TERRITORY 

(New  Orleans  is  on  the  Mississippi  River  about  100 
miles  from  its  mouth.  It  is,  however,  near  the  head  of 
navigation  for  deep-sea  vessels  and  is  ordinarily  classed 
as  a  Gulf  port  as  well  as,  as  is  indicated  above,  a  Miss- 
issippi River  Crossing.) 

7.  Potomac  Gateways 

The  Potomac  Gateways  are  Alexandria,  Va.,  Hagers- 
town,  Md.,  Potomac  Yards,  Va.,  Shenandoah  Junction, 
W.  Va.,  Strasburg  Junction,  Va.,  and  Washington,  D.  C. 

8.  Virginia  Cities 

The  Virginia  Cities,  so-called,  are  Basic,  Bothwell, 
Burkeville,  Charlottesville,  Clifton  Forge,  Gordonsville, 
Hampton,  Lexington,  Lynchburg,  Newport  News,  Nor- 
folk, Orange,  Petersburg,  Phoebus,  Portsmouth,  Rich- 
mond, Roanoke,  Staunton,  Suffolk,  and  Waynesboro,  Va. 

9.  Southeastern  Territory 

The  Southeastern  Territory,  as  that  term  is  techni- 
cally used  in  rate  construction,  is  that  great  section 
lying  east  of  the  main  line  of  the  Mobile  &  Ohio  Rail- 
road from  Corinth,  Miss.,  to  Mobile,  Ala.,  and  on  and 
south  of  the  Memphis  Division  of  the  Southern  Railway 
from  Corinth,  Miss.,  to  Chattanooga,  Tenn.,  and  on  and 
south  of  a  line  drawn  from  Chattanooga,  Tenn.,  through 
Cleveland,  Tenn.,  Murphy,  N.  C,  and  Walhalla,  Green- 
wood, and  Columbia,  S.  C,  to  Wilmington,  N.  C.  (The 
term  ''Southeastern  Territory"  is  often  used  to  refer 
to  what  is  the  proper  geographical  description  of  a  sec- 


DEFINITIONS  AND  DESCRIPTIONS  15 

tioii  of  the  United  States — that  is,  the  wholQ  of  the  ter- 
ritory under  discussion  lying  south  of  the  Ohio  and 
Potomac  rivers  and  east  of  the  Mississippi  River.  Such 
reference  is  improper  when  dealing  with  what  is  termed 
*'the  Southeastern  rate  adjustment.") 

For  rate-making  purposes  the  carriers  interested  make 
a  technical  sub-division  of  this  territory  into  two  groups, 
namely,  "Atlanta  Sub-Territory"  and  "Montgomery 
Sub-Territory."  The  peculiar  distinction  is  only  in  that 
to  the  Montgomery  Sub-Territory  the  rates  from  Cin- 
cinnati and  points  taking  same  rates  are  higher  than  from 
Louisville  and  Ohio  River  Crossings  beloAv,  whereas  to 
Atlanta  Sub-Territory  the  rates  from  all  of  the  Ohio 
River  Crossings  are  the  same. 

10.  Carolina  Territory 

The  Carolina  Territory  includes  territory  within  the 
following  described  boundaries: 

(1)  On,  north,  and  east  of  the  line  from  Wilmington, 
N.  C.  (includiiUg  Wilmington),  via  W.  C.  &  A.  Division 
of  the  Atlantic  Coast  Line,  to  Columbia,  S.  C. ;  thence 
via  the  Southern  Railway  and  Blue  Ridge  Railroad 
through  Alston,  Newberry,  Greenwood,  Abbeville,  Bel- 
ton,  Anderson,  and  Seneca,  S.  C,  to  Walhalla,  S.  C. ; 
thence  via  an  imaginary  line  from  Walhalla  through 
Murphy,  N.  C,  to  Cleveland,  Tenn.  (including  Cleve- 
land) ;  and  thence  via  the  Southern  Railway  from  Cleve- 
land to  Chattanooga,  Tenn.  (not  including  Chattanooga). 

The  northern  boundary  is  the  main  line  of  the  Norfolk 
and  Western  Railway  from  Norfolk,  Va.,  to  Bristol,  Tenn. 
The  western  boundary  is  the  North  Carolina-Tennessee 
state  line  to  a  point  east  of  Cleveland,  Tenn.    A  portion 


16         FREIGHT  RATES:  SOUTHERN  TERRITORY 

of  East  Tennessee  (see  Atlas)  for  the  purpose  only  of 
adjusting  the  rates  as  between  Ohio  River  Crossings  and 
points  related  thereto  to  destinations  in  East  Tennessee, 
is  included  as  being  in  Carolina  Territory. 

(2)  On,  east,  and  south  of  a  line  drawn  from  Cleve- 
land, Tenn.,  via  the  Southern  Railway  through  Athens 
and  Knoxville  to  Bristol  (including  Bristol  and  includ- 
ing also  points  on  the  K.  &  0.  Division  of  the  Southern 
Railway  between  Knoxville  and  Jellico,  not  including 
Jellico) ;  and  thence  via  a  line  drawn  just  south  of  the 
main  line  of  the  Norfolk  and  Western  Railway,  from 
Bristol,  Tenn.,  to  a  point  just  south  of  Norfolk,  Va. 

11.  Mississippi  Valley  Territory 

The  Mississippi  Valley  Territory  includes  territory 
within  the  following  described  boundaries : 

(1)  On  and  east  of  the  east  bank  of  the  Mississippi 
River  south  of  Cairo  (but  including  Helena,  Ark.,  and 
Vidalia,  La.,  on  the  west  bank). 

(2)  South  of  the  Ohio  River  from  Cairo  to  Paducah 
(not  including  Cairo  or  any  point  on  the  Ohio  River). 

(3)  On  and  west  of  the  line  from  Paducah,  Ky.  (not 
including  Paducah),  via  the  M.  &  P.  Division  of  the  Nash- 
ville, Chattanooga  &  St.  Louis  Railway  to  Paris,  Tenn. ; 
thence  via  the  Louisville  &  Nashville  Railroad  through 
McKenzie  to  Milan,  Tenn.;  thence  via  the  Illinois  Cen- 
tral Railroad  to  Jackson,  Tenn.;  and  thence  via  the 
Mobile  &  Ohio  Railroad  through  Meridian,  Miss.,  to 
Mobile,  Ala.  (including  Aberdeen  and  Columbus,  Miss.). 


DEFINITIONS  AND  DESCRIPTIONS  17 

12.  Kentucky-Tennessee  Territory 

The  boundaries  of  the  Kentucky-Tennesse  Territory 
are  as  follows:  On  the  east  by  the  lines  of  the  Louis- 
ville &  Nashville  Railroad  in  Kentucky  and  the  Southern 
Railway  in  Tennessee;  on  the  south  by  the  northern 
boundary  of  Southeastern  Territory ;  on  the  west  by  the 
eastern  boundary  of  Mississippi  Valley  Territory;  and 
on  the  north  by  the  Ohio  River. 


CHAPTER  III 

the  southern  basing- point  system 

1.  The  History 

This  system  has  a  history  which  has  its  beginning 
with  the  construction  of  the  first  railroad  in  the  South. 
It  has  grown  with  the  development  of  the  railroad  sys- 
tems and  is  a  part  of  the  warp  and  woof  of  the  rate 
structure.  It  cannot  be  understood  except  in  the  light  of 
a  knowledge  of  the  geography  of  this  section  of  our 
country,  and  it  cannot  be  appreciated  without  at  least 
some  knowledge  of  the  history  of  the  development  of  the 
railroads  and  of  the  boat  lines  by  which  this  system  has 
been  brought  to  its  present  status,  for  ''the  roots  of  the 
present  are  deep  in  the  past,  and  nothing  is  dead  to  the 
man  who  will  learn  from  the  past  how  the  present  came 
to  be  what  it  is." 

This  system  of  rate-making  has  grown  and  expanded 
from  the  freight  charges  applied  over  a  single  line  of 
railway  only  135  miles  in  length  to  a  vast  body  of  rates 
contained  in  thousands  of  printed  tariff  schedules  and 
applied  over  nearly  30,000  miles  of  railway.  The  great 
natural  highways  of  commerce  on  the  north,  east,  south, 
and  west  make,  in  effect,  almost  an  island  of  the  territory 
under  discussion.  These  natural  means  of  transporta- 
tion, permitting  it  to  be  reached  by  the  outside  world  at 
nearly  every  point  on  its  borders  and  aided  by  the  many 
navigable  streams  by  which  it  is  pierced,  furnished  a 

18 


THE  SOUTHERN  BASING-POINT  SYSTEM  19 

means  of  transportation  to  the  pioneers  of  the  region  long 
before  railroads  were  built ;  that  is,  trade  centers  existed 
and  trade  routes  were  established  years  prior  to  the  time 
when  railroads  became  a  means  of  transportation. 

(a)  First  Basing -Points 

Prior  to  the  beginning  of  railway  construction  in  the 
South,  the  trade  centers  and  distributing  points  were 
located  on  the  Atlantic  and  Gulf  coasts  and  on  the  nav- 
igable waterways.  Naturally  the  dominating  markets 
were  those  cities  or  towns  located  along  the  seaboard  and 
at  or  near  the  mouths  of  the  navigable  rivers ;  it  was  those 
places  that  commanded  the  entire  trade  of  the  develop- 
ing territory.  Such  were  Norfolk  and  Richmond,  Va., 
on  the  James  River;  Wilmington,  N.  C,  at  the  mouth  of 
the  Cape  Fear  River;  Georgetown,  S.  C,  at  the  mouth  of 
the  Pedee  River;  Charleston,  S.  C,  located  at  a  point 
where  it  could  use  the  Santee  River,  the  Pedee  River,  or 
the  Savannah  River;  Savannah,  Ga.,  at  the  mouth  of  the 
river  of  that  name;  Brunswick,  Ga.,  commanding  the 
Altamaha  and  Ocmulgee  trade;  Apalachicola,  Fla.,  com- 
manding the  trade  of  southern  Georgia  and  Alabama  by 
means  of  the  Chattahoochee  and  Flint  rivers;  Mobile, 
Ala.,  controlling  the  trade  of  the  greater  portion  of  Ala- 
bama and  parts  of  Mississippi  and  vying  with  Apalachi- 
cola for  the  trade  in  southern  Alabama ;  and  New  Orleans, 
La.,  near  the  mouth  of  the  Mississippi  River,  having  a 
vast  territory  open  to  her  by  means  of  the  Mississippi 
River  and  its  tributaries. 

Trade  centers  through  which  vast  areas  secured  their 
supplies  and  from  which  trade  routes  radiated  in  all 
directions  were  on  the  navigable  rivers  leading  from  the 


20         FREIGHT  RATES:  SOUTHERN  TERRITORY 

trade  controlling  centers  just  mentioned,  usually  at  the 
head  of  navigation.  Such  places  were  Fayetteville,  N.  C, 
Cheraw  and  Columbia,  S.  iC.,  Augusta,  Macon,  Albany,  and 
Columbus,  Ga.,  Montgomery,  Ala.,  Jackson,  Miss.,  etc. 
On  the  north  and  west  there  were  places  like  Cincinnati 
and  Louisville  on  the  Ohio  River  and  Memphis  and  Vicks- 
burg  on  the  Mississippi  River,  which  were  not  only  con- 
trolling centers  but  distributing  points  as  well,  and  which 
drew  from  sources  by  means  of  wagon  over  the  mountains 
to  Pittsburgh  and  thence  by  boat,  down  the  Ohio,  or  by 
sea  and  thence  up  the  Mississippi  River.  These  were 
also  primary  markets  in  the  sense  that  they  were  gather- 
ing points  of  the  food  products  of  considerable  areas  in 
the  Central  West.  There  were  minor  trade  centers  up  the 
tributaries  of  the  Ohio  and  Mississippi  rivers,  such  as 
Nashville  and  Clarksville,  Tenn. 

Naturally,  there  was  great  rivalry  between  these 
centers  of  trade  control  in  reaching  the  interior  distrib- 
uting centers.  Savannah,  Ga.,  distributed  her  mer- 
chandise to  the  interior  in  competition  with  Charleston, 
S.  C,  and  Brunswick,  Ga.  All  of  them  reached  as  far  as 
they  could,  overcoming  natural  disadvantages  as  best 
they  might.  Charleston  reached,  west  of  the  Savannah 
River,  using  all  overland  routes  against  Savannah's 
advantage  of  a  part-water  route.  Originally,  these 
places  in  the  interior  were  more  on  the  order  of  trading 
posts  than  distributing  centers,  in  the  modern  sense  of 
the  word,  but  as  their  trade  grew  they  not  only  con- 
tinued to  deal  with  the  dominating  centers  along  the 
seaboard,  but  reached  out  past  them  to  secure  their  sup- 
plies directly  from  primary  markets.  Thus,  gradually, 
they  came  directly  into  competition  with  the  more  favor- 
ably situated  places  which  had  theretofore  dominated 


THE  SOUTHERN  BASING-POINT  SYSTEM  21 

their  trade.  In  time,  for  example,  Augusta,  Ga.,  which 
originally  was  in  a  great  degree  dependent  on  Savannah 
and  Charleston,  became  a  competitor,  as  well  as  a  patron, 
of  those  places.  It  takes  little  imagination  to  realize  how, 
even  prior  to  railroad  construction,  these  coastal  and  inte- 
rior towns  declined  to  remain  content  with  the  trade  each 
in  its  immediate  section,  but,  reaching  out,  struggled 
for  that  of  the  other. 

In  1830,  in  addition  to  the  markets  and  trade  distrib- 
uting centers  referred  to,  there  were  others  of  less  im- 
portance doing  a  greater  or  less  distributing  business  in 
the  sections  tributary  to  them,  respectively.  Such  cen- 
ters were  Milledgeville,  Ga.,  at  the  head  of  navigation 
on  the  Oconee  River;  Eufaula,  Ala.,  and  Fort  Gaines, 
Ga.,  on  the  Chattahoochee  River;  Rome,  Ga.,  on  the 
Coosa  River ;  Selma,  Ala.,  on  the  Alabama  River ;  Chat- 
tanooga and  Knoxville,  Tenn.,  on  the  Tennessee  River; 
Frankfort,  Ky.,  on  the  Kentucky  River;  'and  Bowling 
Green,  Ky.,  on  the  Barren  River.  There  were,  too,  trad- 
ing posts  advantageously  located,  usually  in  some  sec- 
tion that  was  settling  up  and  on  routes  which  offered 
comparatively  easy  means  of  transportation. 

(h)  Construction  of  Railroads 

The  earlier  railroad  construction  was  all  determined 
upon  to  enable  the  market  points  to  reach  into  a  develop- 
ing territory  to  compete  therein  more  successfully  with 
other  places  having  greater  natural  advantages.  The 
construction,  naturally,  was  to  connect  places  which 
had  trade  and  which  afforded  a  traffic  at  the  outset. 
Thus  we  witness  Charleston,  S.  C,  promoting  a  railroad 
to  Hamburg,  S.  C.  (immediately  across  the  river  from 


22         FREIGHT  RATES:  SOUTHERN  TERRITORY 

Augusta,  Ga.),  to  enable  it  to  divert  from  Savamiati  a 
greater  share  of  the  business  done  at  and  through 
Augusta ;  this  railroad,  which  was  the  third  in  the  United 
States,  and,  at  the  time,  the  longest  in  the  world,  was 
completed  in  1833. 

Of  course,  having  the  advantage  of  an  easy  use  of  a 
natural  highway  to  Augusta,  Ga.,  the  people  of  Savan- 
nah devoted  their  energies  rather  to  removing  their  own 
disadvantage,  and,  in  1833,  began  the  construction  of  a 
railroad  from  Savannah  to  Macon,  enabling  them  to  com- 
pete on  more  equal  terms  with  those  who  were  using  the 
Altamaha  and  Ocmulgee  rivers ;  this  line  was  completed 
in  1845. 

The  success  of  the  earlier  railroads  constructed,  both 
in  this  country  and  in  Europe,  turned  the  attention  of 
the  people  in  the  Southern  States  to  the  development  of 
artificial  highways.  In  the  first  instance,  as  has  been 
indicated,  the  construction  of  railways  was  in  every  case 
undertaken  for  the  purpose  of  reaching  some  navigable 
river  within  or  near  the  borders  of  a  single  state,  of  con- 
necting navigable  rivers,  of  connecting  places  on  differ- 
ent navigable  rivers,  or  of  building  from  the  river 
towns  into  the  interior.  While  the  beginning  of  rail- 
road planning  dated  from  1828,  it  was  not  until  1836  that 
the  daring  suggestion  of  a  possibility  of  constructing 
great  trunk  lines  across  the  territory  of  the  several 
states  was  entertained  in  the  South.  It  was  many  years, 
however,  before  any  line  that  even  approached  the 
modern  meaning  of  the  term  ** trunk  line"  was  actually 
constructed. 

In  1834  the  state  of  Georgia  commenced  the  construc- 
tion of  a  railroad  from  the  Tennessee  River  at  Chat- 
tanooga, Tenn.,  which  was  to  form  a  connection  near 


THE  SOUTHERN  BASING-POINT  SYSTEM  23 

Decatur,  Ga.,  with  a  railroad  which  was  building  west- 
ward from  Augusta,  Ga.,  to  meet  it ;  the  meeting  point  of 
these  two  railroads  is  now  the  city  of  Atlanta,  Ga.  About 
the  time  these  were  completed,  the  people  at  Savannah 
and  Macon,  Ga.,  extended  their  road  also  to  form  a  con- 
nection with  the  two  just  mentioned.  The  idea  in  this 
construction  was  to  enable  western  products  to  be  drawn 
up  the  Tennessee  River  for  distribution  by  rail,  and  thus 
avoid  the  more  tedious  and  expensive  transportation  of 
such  via  the  Atlantic  seaboard  or  down  the  Mississippi 
River,  and  also  to  distribute  the  products  of  the  North 
Atlantic  seaboard  and  Europe  into  northern  Alabama, 
Georgia,  Tennessee,  and  Kentucky  as  against  the  older 
route  down  the  Ohio  River  from  Pittsburgh,  Pa.  This 
project  was  aided  by  the  completion  in  1844  of  the  43-mile 
railroad  from  Tuscumbia,  Ala.,  to  Decatur,  Ala.,  around 
the  Mussel  Shoals  in  the  Tennesse  River,  which  were  an 
obstruction,  except  at  certain  seasons,  to  successful  nav- 
igation of  the  Tennessee  River  as  far  as  Chattanooga. 
About  1852  a  road  was  completed  between  Nashville  and 
Chattanooga,  Tenn.,  thus  affording  still  more  easy  means 
of  transportation  of  western  products  by  combined  water 
and  rail  routes  into  the  Southeast.  Practically  at  the 
same  time,  a  railroad  was  completed  northeastwardly 
from  Montgomery,  at  the  head  of  navigation  on  the 
Alabama  River,  and  when  completed  to  Atlanta,  afforded 
a  more  successful  means  of  transportation  from  the 
lower  Mississippi  Valley  into  Georgia  and  the  Carolinas 
than  theretofore  existed  around  Florida.  About  the 
same  time  was  constructed  a  railroad  from  Knoxville, 
Tenn.,  at  the  head  of  navigation  on  the  Tennessee  River, 
to  Bristol,  Tenn.,  and  railroads  radiating  northwest- 
wardly from  Columbia.  S.  C,  gave  that  place  the  com- 


24         FREIGHT  RATES:  SOUTHERN  TERRITORY 

mand  of  the  trade  in  northern  and  western  South  Caro- 
lina and  the  southern  and  western  portions  of  North 
Carolina. 

(c)  Early  Tariffs 

In  the  beginning,  the  railroads  planned  their  tariffs  a 
good  deal  like  those  they  found  being  used  by  the  steam- 
boats ;  that  is,  some  rates  were  made  per  package  or  per 
article,  and  others  on  a  weight  basis;  but  the  rail  lines, 
recognizing  that  they  could  not  exist  on  the  actual 
water  charges  per  unit  of  distance,  measured  their  figures 
on  a  materially  higher  plane.  We  find,  however,  at  the 
beginning,  the  railroads  were  compelled  to  lower  their 
tariffs  considerably  between  the  points  of  actual  com- 
petition with  the  water  carriers.  Thus  began  the  first 
variation  from  the  present-day  long-and-short-haul  prin- 
ciple as  embodied  in  the  Fourth  Section  of  the  Inter- 
state Commerce  Act.  In  his  annual  report  to  the 
stockholders  for  the  year  1844,  President  Cuyler,  of  the 
Central  of  Georgia  Railway,  bewailed  the  fact  that  he  was 
forced  to  make  material  reductions  in  his  rates  between 
Savannah  and  Macon  on  account  of  the  very  active  boat 
competition,  and  he  further  deplored  the  fact  that  the 
shippers  at  intermediate  points  had  made  complaints 
because  he  had  made  these  reduced  rates  between  Savan- 
nah and  Macon  without  reducing  the  rates  between 
Savannah  and  intermediate  points.  It  is  evident  that 
President  Cuyler  felt  very  keenly  the  injustice  of  these 
complaints,  and  in  his  report  he  set  forth  the  reason  and 
justification  for  his  course,  from  which  is  quoted  the 
following : 

The   subject  of  rates   for   freight  has  engaged  the   earnest 


THE  SOUTHERN  BASING-POINT  SYSTEM  25 

attention  of  the  Board  of  Directors,  and  during  the  past  week 
it  was  determined  that  the  rate  should  be  reduced  on  the  main 
body  of  articles  transported,  generally  25  per  cent. 

I  submit  to  you  a  table  of  these  new  rates,  and  beg  leave  to 
offer  a  few  remarks  on  this  point.  It  cannot  have  escaped  your 
observation  that  complaints  have  been  made  in  relation  to  the 
proportion  which  way  freights — freights  to  intermediate  stations, 
bear  at  times  to  the  through  rates.  At  Macon  and  Savannah, 
the  termini  of  our  road,  there  has  been  strong  competition  in 
the  transportation  business.  The  experience  of  the  past  winter 
has  proven  the  necessity  of  reducing  the  through  rates  of  freight 
to  a  very  low  point  when  navigation  was  good. 

When  the  road  shall,  by  reason  of  low  river,  be  the  only 
means  of  conveyance  to  Macon,  the  rates  can  be  carried  to  the 
maximum  point  indicated  in  the  table  for  up  goods,  and  to  a 
profitable  standard  for  cotton. 

This  sliding  scale  of  rates,  at  the  termini  of  the  road,  is 
imposed  on  the  company  as  a  matter  of  necessity.  In  establish- 
ing the  way  rates,  which  are  intended  to  be  permanent,  we  have 
sought  to  carry  goods  and  produce,  for  the  planter  or  trader, 
at  a  rate  below  any  other  means  of  conveyance  to  and  from  his 
door;  thus  making  it  his  interest  to  use  our  road.  If,  in  the 
experience  of  the  company,  hereafter,  it  shall  be  found  that 
goods  and  produce  can  be  transported  with  fair  profits,  at  a  rate 
still  lower  than  the  now  established  rate,  then  sound  policy  will 
dictate  the  propriety  of  coming  down,  in  the  reasonable  expec- 
tation that  there  will  be  an  increase  of  business.  You  will 
perceive  that  the  freights  on  salt,  bar  iron,  and  agricultural 
implements  have  been  reduced  in  greater  proportion  than  on 
any  other  goods  which  go  by  weight. 

The  idea  that  injustice  is  done  to  the  traders  and  planters  of 
the  intermediate  country,  when  we  reduce  our  through  rates 
without  a  corresponding  reduction  of  way  rates,  is  fallacious. 
The  necessity  imposed  on  us  by  nature  in  the  one  case  does 
not  exist  in  the  other,  and  it  should  not  be  forgotten  that  if, 
on  a  very  low  scale  to  Macon,  there  should  be  a  corresponding 
fall  in  rates  through  the  whole  line,  the  rates  would  not  pay 
us  for  the  expense  of  transportation,  and  then,  as  no  work  of 


26         FREIGHT  RATES:  SOUTHERN  TERRITORY 

this  kind  can  ever  succeed  and  be  permanent  without  profit  to 
the  stockholders,  the  traders  and  planters  of  the  interior  might 
lose  what  they  now  have — a  cheap  means  of  transportation. 
The  Board  of  Directors  seeks  to  have  the  freights  so  high  as  to 
be  profitable  to  the  stockholders,  and  so  low  as  to  make  it  the 
obvious  interest  of  the  public  to  give  the  road  their  business, 
and  it  believes  that  the  present  table  of  rates  is  established  on 
that  basis.  It  should  be  borne  in  mind,  moreover,  that  the 
operations  of  a  road  so  extended  as  this — its  effect  upon  the 
country  to  which  it  is  tributary,  and  the  effect  of  that  country 
upon  the  road  itself — are  matters  not  to  be  known  intuitively, 
but  to  be  learned  by  nice  observation  and  through  experience. 
We  are  even  yet  in  our  infancy,  but  progressing  I  trust  to  that 
state  in  which  the  invitations  of  sound  knowledge,  heartily 
welcomed,  wiU  lead  not  only  to  our  own  success,  but  also  to  the 
public. 

In  the  same  way,  we  find  that  the  South  Carolina 
Railroad  early  found  that  the  merchants  at  Charleston, 
S.  C,  could  not  compete  at  Augusta,  Ga.,  against  the 
cheaper  transportation  afforded  the  Savannah  merchants 
in  shipping  to  Augusta,  unless  it  materially  reduced  its 
tariff  between  Charleston  and  Augusta.  The  records 
show  a  great  number  of  instances,  prior  to  the  beginning 
of  the  active  construction  of  the  existing  rate  fabric, 
where,  to  meet  competition — principally  water  compe- 
tition— single  lines  made  reductions  of  considerable 
amounts  in  their  distance  or  local  tariffs  between  the 
places  of  active  competition,  but  there  are  no  instances 
where,  at  that  time,  two  or  more  lines  made  any  joint 
rates  below  the  combination  of  their  several  rates,  either 
because  of  competition  or  other  conditions. 

As  a  matter  of  fact,  with  the  beginning  of  the  operation 
of  these  railways  and  continuing  with  few  exceptions 
until  the  renewal  of  railroad  activities  following  the  Civil 


THE  SOUTHERN  BASING-POINT  SYSTEM  27 

War,  joint  transportation  charges  over  two  or  more  lines 
were  made  by  adding  the  separate  charges  of  the  carriers 
involved.  If  a  shipment  was  made  from  New  York,  via 
Charleston,  to  some  point  on  the  Charleston  Railroad,  the 
boat  line  bringing  the  freight  to  Charleston  exacted  its 
rate  thereto  the  same  as  it  assessed  on  business  to 
Charleston  proper,  and  the  railroad  carrying  the  freight 
from  Charleston  to  destination  exacted  its  local  rate  from 
Charleston;  thus  Charleston  became  a  basing  point  for 
rates  from  New  York  and  other  places,  through  Charles- 
ton, to  destinations  between  Charleston  and  Augusta,  as 
well  as  to  Augusta.  If  a  shipment  was  made  from 
Charleston  to  a  point  on  the  Georgia  Railroad  between 
Augusta  and  Atlanta,  each  line  exacted  its  full  local 
charges  for  the  carriage  of  the  freight;  thus,  Augusta 
became  a  basing  point  for  rates  to  points  between  Augusta 
and  Atlanta.  In  like  manner,  Atlanta,  being  a  point  for 
interchange  of  freight  between  the  Georgia  Railroad  and 
the  Western  &  Atlantic  Railroad,  became  a  basing  point 
for  rates  on  freight  from  points  east  thereof  to  destina- 
tions west.  These  examples  in  number  were  equal  to  the 
number  of  terminal  points  of  the  railroads  in  operation. 

(d)  Joint  Rates  and  Through  Routes 

While  there  was  some  recognition  given  to  the  com- 
mercial necessities  and  best  interests  of  the  interested 
carriers  in  the  making  of  joint  rates  for  the  purpose  of 
developing  traffic  or  of  enabling  it  to  move  from  a  place 
or  section  which  was  not,  at  the  time,  a  factor  in  a  given 
trade,  the  expediency  and  wisdom  of  such  action  was  not 
fully  recognized  until  following  the  Civil  War,  which 
marked  the  real  beginning  of  joint  rates  and  through 


28         FREIGHT  RATES:  SOUTHERN  TERRITORY 

routes,  wliicli  were  made  to  meet  the  circumstances  and 
conditions  that  might  be  found  at  each  destination,  or 
those  of  a  particular  line  of  traffic.  It  was  during  the 
period  from  1868  to  1890  that  the  Southern  rate  fabric, 
as  it  now  stands,  may  be  said  to  have  been  completely 
constructed.  This  statement  does  not  mean  that  the 
figures  as  they  were  made  during  this  period  have  neces- 
sarily been  continued.  There  have  been  many  changes, 
both  in  the  figures  and  by  the  substitution  of  lower  relative 
rates  to  many  destinations  which,  during  that  period, 
were  not  considered  basing  points,  but  which  are  now 
handled  as  such. 

At  the  beginning  of  this  period,  as  has  been  stated, 
railroad  managers  began  to  recognize  that  the  interests 
of  the  places  and  sections  served  by  them  and  the  inter- 
ests of  their  railroads  were  mutual,  and  that  these  inter- 
ests could  be  better  advanced  by  getting  aw^ay  from  their 
old  idea  that  each  road  was  a  local  entity  and  by  making 
such  rates  as  would  be  necessary  to  induce  the  opening  of 
all  possible  avenues  of  trade  at  rates  necessary  to  move 
the  traffic,  each  carrier  securing  the  greatest  share  pos- 
sible at  the  most  favorable  rates.  It  was  recognized  that 
at  a  local  station  all  that  was  necessary  was  a  system  of 
through  rates,  but  that  it  was  not  necessary  for  the 
terminal  line  to  abate  its  charges,  for  the  traffic  would 
move  in  the  greatest  possible  volume  to  that  local  station 
on  the  basis  of  local  rates,  insofar  as  the  terminal  line 
was  concerned.  If,  however,  the  Western  &  Atlantic 
Railroad,  being  interested  in  the  traffic  from  the  West  to 
Atlanta,  but  not  from  the  South  Atlantic  Coast  or  from 
the  East  thereto,  desired  to  participate  in  traffic  being 
drawn  by  Atlanta,  it  had  to  be  careful  to  see  that  its  own 
rates  and  connections  from  the  West  to  Atlanta  were 


THE  SOUTHERN  BASING-POINT  SYSTEM  29 

properly  adjusted  as  against  the  rates  from  other  sources 
of  supply.  Similarly  did  the  Georgia  Railroad,  which 
had  no  interest  in  the  movement  of  business  from  the 
West  to  Atlanta,  but  only  from  the  East  or  from  the 
coast  points,  have  to  watch  to  see  that  there  were  no  rate 
inequalities  which  would  prevent  it  from  doing  a  fair 
share  of  Atlanta's  traffic.  When  it  came  to  Augusta's 
business,  the  situation  as  to  the  Georgia  Railroad  was 
reversed ;  that  is,  its  interest  lay  in  the  movement  of  busi- 
ness from  the  West  and  not  from  the  East.  The  merchants 
at  Atlanta  and  Augusta,  being  interested  in  securing 
the  widest  possible  range  of  markets  of  supply,  brought 
every  possible  influence  to  bear  to  secure,  not  what  was  a 
proper  equality  in  their  respective  rates,  but  to  get  all  the 
advantages  they  could,  each  over  the  other  and  over  other 
competing  towns.  While  at  a  local  station  on  the  Georgia 
Railroad  midway  between  Atlanta  and  Augusta  traffic 
could  and  did  successfully  move  on  the  basis  of  the  local 
charges  of  the  Georgia  Railroad,  from  either  Atlanta  or 
Augusta,  as  the  case  might  be,  plus  the  lowest  rates  that 
could  be  secured  up  to  Atlanta  or  Augusta,  there  was  no 
incentive  for  the  Georgia  Railroad  to  make  any  reduc- 
tions. 

Naturally,  the  keenness  of  the  competition  between  the 
sources  of  supply,  coupled  with  the  jealous  activities  of 
the  interested  carriers,  brought  about  very  low  rates  from 
the  West  to  Augusta,  producing  from  the  West  very 
little  higher  rates  than  to  Atlanta.  In  the  reverse  direc- 
tion, Augusta's  rates  naturally  were  somewhat  lower 
than  those  to  Atlanta,  but  the  differences  represented 
very  materially  lower  figures  than  the  local  rates  between 
the  two  places. 


30        FREIGHT  RATES:  SOUTHERN  TERRITORY 
2.  Common  Points  and  Basing  Points 

(a)  Description 

Terms  used  in  describing  places  in  the  South  which 
have  these  competitive  adjustments  are  ''common 
points"  and  ''basing  points";  often  these  terms  are 
employed  interchangeably. 

Literally,  a  common  point  is  a  place  served  by  two  or 
more  common  carriers — rail  or  water,  or  both.  In  most 
cases  the  rates  for  other  than  shorter  hauls  to  these 
places  are  below  either  the  sums  of  the  rates  of  the  indi- 
vidual carriers  forming  through  routes  or  the  local  scales 
of  a  single  line;  frequently  even  the  shorter-haul  rates 
are  similarly  lower  than  such  maximums,  due  principally 
to  the  working  of  relative  adjustments  between  points  of 
origin.  There  is,  however,  to  be  found  a  considerable 
number  of  junction  points,  the  rates  to  which  from  vari- 
ous points  of  origin  are  made  on  a  combination  or  local 
tariff  basis  or  reach  figures  approximating  such  bases. 
A  common  point  is  not  necessarily  a  basing  point,  as 
there  are  junctions  the  rates  to  which  are  not  sufficiently 
low,  as  compared  w^ith  those  to  other  junctions  in  the 
same  section,  to  figure  in  making  total  rates  to  adjacent 
local  stations. 

A  basing  point  is  literally  a  place  on  which  through 
rates  to  other  points  are  calculated  either  on  a  combi- 
nation or  a  differential  basis;  the  rates  to  the  basing 
points,  for  other  than  the  shortest  or  local  hauls,  are  in- 
variably less  than  the  sums  of  the  rates  of  each  interested 
line,  where  the  transportation  is  over  two  or  more  lines, 
or  the  local  scales  of  a  single  line;  and,  as  is  apparent 
from  previous  statements,  there  are  no  basing  points 


THE  SOUTHERN  BASING-POINT  SYSTEM  31 

except  at  the  intersection  of  railroads,  of  water  routes, 
or  of  a  railroad  and  a  navigable  body  of  water. 

To  other  than  the  common  points,  through  rates  are 
made  by  the  addition  of  the  local  rates  of  the  terminal 
line  to  the  rates  to  the  adjacent  basing  points  on  such 
hne,  the  resulting  lowest  combination  being  the  figures 
employed.  There  are  variations  from  this  principle  of 
constructing  rates  to  the  non-competitive  destinations: 
(1)  A  line  having  a  single  haul  does  not  exceed,  in  any 
case,  its  tariffs  of  distance  or  local  rates;  and  (2)  from 
the  East  to  a  considerable  portion  of  the  Carolina  terri- 
tory, and  both  from  the  East  and  the  West  to  a  certain 
portion  of  South  Georgia,  through  rates  are  made  on 
differentials  higher  than  to  the  adjacent  basing  points, 
which,  of  course,  serve  to  produce  lower  through  rates 
than  would  exist  by  the  application  of  the  lowest  com- 
bination principle. 

{h)  Lists  of  Common  and  Basing  Points 

The  basing  points  in  the  South  may  be  separated  into 
two  classes — those  that  are  so-called  natural  basing 
points,  and  those  created  by  the  operation  of  conditions 
among  the  railroads  themselves.  The  first,  as  will  read- 
ily be  understood,  are  those  such  as  Augusta  and  Macon, 
Ga.,  Montgomery,  Ala.,  Nashville,  Tenn.,  and  the  like, 
which  were  basing  points  prior  to  the  existence  of  the 
railroads,  due  to  the  availability  of  water  navigation.  In 
these  cases,  transportation  charges  from  the  sources  of 
supply  to  points  beyond  the  basing  points  were  made  by 
the  addition  of  the  water  transportation  charges  thereto, 
to  the  wagoning  or  packing  charges  beyond.  The  arti- 
ficial basing  points — if  such  a  term  may  be  properly  em- 


32         FREIGHT  RATES :  SOUTHERN  TERRITORY 

ployed— are  places  such  as  Atlanta,  Ga.,  Birmingham, 
Ala.,  and  Meridian,  Miss.,  where  the  competition  as  be- 
tween the  railroads  gradually  brought  about  lessening 
relative  rates  as  compared  with  other  places  in  the  im- 
mediate territory. 

At  the  present  time  the  basing  points  employed  in  the 
southeastern  rate  construction  are  as  follows : 

(a)  Natural  Basing  Points 

Albany    Ga.  Fort  Gaines   Ga. 

Apalachicola    Fla.  Gadsden    Ala. 

Attalla    Ala.  Hawkinsville    Ga. 

Augusta    Ga.  Jacksonville  Fla. 

Bainbridge    Ga.  Knoxville    Tenn. 

Beaufort   S.  0.  Macon    Ga. 

Brunswick    Ga.  Milledgeville  Ga. 

Cliarleston    S.  C.  Montgomery    Ala. 

Chattanooga   Tenn.  Palatka    Fla. 

Columbia    S.  C.  River  Junction  Fla. 

Columbia    Ala.  Rome    Ga. 

Columbus    Ga.  Savannah    Ga. 

Demopolis    Ala.  Selma    Ala. 

Dublin    Ga. 

(6)  Artificial  Basing  Points 

Americus   Ga.       Fitzgerald    Ga. 

Anniston    Ala.      Fort  Valley Ga. 

Athens    Ga.      Gainesville    Ga. 

Atlanta    Ga.      Greenville    Fla. 

Athens    Tenn.      Harriman    Tenn. 

Barclay    Ala.      Jacksonville    Ala. 

Bessemer    Ala.      Johnson  City  Tenn. 

Birmingham    Ala.      Jellico    Tenn. 

Bristol    .....Tenn.      La   Grange   Ga. 

Calera    Ala.      Montezuma    Ga. 

Cartersville  Ga.      Moultrie    Ga. 

Cedartown    Ga.      Newnan    Ga. 

Cordele    Ga.      Newport    Tenn. 

Dalton    Ga.      Opelika    Ala. 

Dawson    Ga.      Piedmont    Ala. 


THE  SOUTHERN  BASING-POINT  SYSTEM 


33 


Pitts   Ga. 

Quitman    Ga. 


Vienna    Ga. 

Washington    Ga. 


Roanoke   Ala.      Waycross  Ga. 


Tallahassee    Fla. 

Thomasville    Ga. 


Wellington  Ala. 

West  Point  Ga. 


Tifton    Ga.      Worth    Ga. 

Valdosta    Ga. 

Those  used  in  constructing  rates  to  destinations  in 
Carolina  territory  are: 


Athens Ga. 

Atlanta    Ga. 

Augusta    Ga. 

Burkeville   Va. 

Charleston S.  C. 

Columbia    S.  O. 

Johnson  City   Tenn. 

Kilby    Va. 


Norfolk    Va. 

Paint  Rock   N.  C. 

Petersburg    Va. 

Richmond    Va. 

Roanoke  Va. 

St.   Paul    Va. 

Suffolk   Va. 


Those  used  in  making  of  through  rates  to  points  in  the 
Mississippi  Valley  Territory  are : 


Aberdeen    Miss. 

Brookhaven   Miss. 

Columbus    Miss. 

Corinth   Miss. 

Ellisville  Miss. 

Gibbs    Tenn. 

Grand  Junction  Tenn. 

Greenville    Miss. 

Greenwood    Miss. 

Gulfport    Miss. 

Hattiesburg    Miss. 

Holly  Springs  Miss. 

Humboldt    Tenn. 

Jackson  Miss. 

Jackson    Tenn. 

Laurel   Miss. 

Lumberton    Miss. 

McKenzie    Tenn. 


Martin    Tenn. 

Memphis    Tenn. 

Meridian     Miss. 

Milan    Tenn. 

Mobile    Ala. 

Natchez  Miss. 

New  Albany Miss. 

New  Orleans La. 

Newton   Miss. 

Paris    Tenn. 

Rivers    Tenn. 

Starkville .Miss. 

Tupelo  Miss. 

Union  City   Tenn. 

Vicksburg   Miss. 

West  Point   Miss. 

Winona  Miss. 

Yazoo  City Miss. 


34        FREIGHT  RATES:  SOUTHERN  TERRITORY 

In  the  making  of  through  rates  to  points  in  Kentucky- 
Tennessee  Territory,  practically  every  junction  is  con- 
sidered as  a  basing  point,  although  many  of  the  hauls 
are  so  short  that  the  various  local  scales  often  fix  the 
rates. 

(c)  Development  of  the  Common  Points 

During  the  long  period  of  settlement  prior  to  the  year 
1828,  which  marked  the  beginning  of  plans  for  railroad 
construction  in  this  territory,  the  principal  industry  was 
the  production  of  cotton.  There  were  substantially  no 
manufactures  of  any  kind  which  were  intended  to  supply 
other  than  an  immediate  local  demand.  The  main  food 
supplies  of  the  Southeast  were,  of  course,  produced  and 
exchanged  between  producers  and  consumers  in  its 
various  different  sections.  The  people,  however,  were 
dependent  for  a  great  many  articles  of  necessity  or  com- 
parative luxury,  such  as  manufactured  and  prepared 
food  articles,  textiles,  farm  and  household  supplies,  etc., 
on  the  North  Atlantic  seaboard  and  foreign  countries, 
although  a  gradual  modification  of  this  condition  con- 
tinued until  after  the  Civil  War.  About  1870  began  a 
change,  and  while  the  South  today  is  not  to  be  compared 
with  the  northern  and  eastern  states  in  point  of  produc- 
tion and  manufacture  of  commodities,  it  has  made  rapid 
strides  toward  the  final  point  of  being  self-sustained, 
that  is,  substantially  independent  of  other  sections  as 
concerns  all  commodities  of  common  use. 

In  this  earlier  period  the  dominating  cities  which  did 
a  jobbing  or  wholesaling  business  and  which  were  pri- 
mary markets  in  the  sense  that  it  was  through  them  that 
the  products  of  the  outside  world  used  in  the  South  were 


THE  SOUTHERN  BASING-POINT  SYSTEM         35 

concentrated  and  distributed,  were  those  on  or  near  the 
outer  borders  of  the  territory — Baltimore,  Richmond, 
Norfolk,  Wilmington,  Charleston,  Savannah,  Brunswick, 
Mobile,  New  Orleans,  Memphis,  St.  Louis,  and  Louisville. 
These  cities,  besides  being  the  main  sources  from  which 
the  interior  towns  drew  their  supplies,  competed  with  the 
interior  places  in  making  final  distribution  to  the  trading 
"**  posts  and  countryside. 

Attention  has  been  drawn  to  the  fact  that  the  first 
railroads  were  built  through  settled  sections,  or  at  least 
between  settled  sections,  for  only  in  these  was  there  any 
traffic  in  sight.  The  guiding  reason,  however,  was  the 
extension  of  the  means  of  competition,  one  city  with  an- 
other, and  the  first  result  was  the  connection  of  the  water- 
ways and  of  what  has  been  termed  the  natural  basing 
points.  The  so-called  artificial  basing  points  are  the  out- 
growth of  subsequent  development  of  the  thinly  settled 
sections,  these  points  being  logical  centers  from  the  stand- 
point of  natural  and  railroad  geography  and  their  rates 
being  fixed  by  prime  considerations,  all  of  which  may  be 
included  in  the  list  of  the  considerations  producing  the 
rates  at  the  natural  basing  points,  save  the  important  one 
of  water  competition,  although  the  latter  may  have  in- 
directly been  an  influence,  as  will  be  hereinafter  explained. 
The  cities  and  towns  of  original  importance  in  commercial 
affairs  have  already  been  named  and  need  not  be  again 
mentioned.  Those  others  which  are  included  in  the  lists 
of  present-day  basing  points  are  all  of  subsequent  growth, 
some  of  them  of  comparatively  recent  origin,  indeed,  some 
not  having  a  civic  existence  beyond  a  quarter  of  a 
century. 

Some  of  these  common  points  have  been  given  that 
standing  and  their  low  comparative  rates  in  the  interest, 


36        FREIGHT  RATES:  SOUTHERN  TERRITORY 

primarily,  of  a  particular  line  of  railroad  reaching  them. 
Such  self-serving  is  in  reality  a  form  of  railroad  compe- 
tition. In  most  instances,  however,  the  accession  of 
each  town  to  the  dignity  of  a  common  point  was  through 
force  of  circumstances  quite  beyond  the  control  of  any 
individual  railroad;  there  was  invariably  some  form  of 
compelling  competition  to  be  found  at  these  places  which 
brought  about  the  competition  in  rate-making.  In  some 
instances,  the  strength  of  these  compulsory  conditions 
has  not  increased,  hence  the  relationship  of  rates  of  those 
places  with  the  rates  of  others  has  not  substantially 
altered.  In  other  instances,  added  forces  have  brought 
the  rates  to  the  particular  places  affected  to  a  lower 
relative  plane,  as  compared  with  competing  centers,  than 
previously  existed. 

It  has  been  said  that  the  real  beginning  of  the  present- 
day  rate  fabric  was  only  a  little  over  forty  years  ago. 
It  will  be  interesting,  in  this  connection,  to  give  some 
study  to  the  appended  map  showing  the  railroad  lines 
that  were  in  existence  in  the  Southern  States  in  1870,  and 
which  shows  also  the  principal  inland  navigable  waters. 
By  comparing  this  map  with  the  latest  one,  the  tremen- 
dous increase  in  the  railroad  mileage  will  be  apparent,  as 
will  also  the  increase  in  the  number  of  common  points 
which  are  the  principal  jobbing  points  today. 

We  have  now  gone  over  the  various  elements  which 
have  been  in  control  of  the  rate-making  to  these  places, 
but  for  the  purpose  of  illustrating  how  the  more  impor- 
tant basing  points  procured  their  position  as  such,  these 
will  be  briefly  touched  on  again. 


\Jf' 


THE  SOUTHERN  BASING-POINT  SYSTEM  37 

3.  Competition  in  Rate-Making 

The  following  factors  in  rate-making  in  Southern 
Territory  are  the  most  important,  and  they  will  be 
treated  individually. 

(a)  Direct  competition  of  rival  routes. 

(b)  Furtherance  of  an  individual  carrier's  direct 
interest. 

(c)  Competition  between  the  different  markets. 

(d)  Competition  between  the  southern  common  and 
competitive  points. 

(e)  Direct  water  competition. 

(f)  Indirect  water  competition. 

(g)  Legal  requirements. 

It  will  be  noted  that,  with  the  exception  of  the  last  one, 
these  factors  have  been  in  effect  to  some  extent  from  the 
time  that  traffic  began  to  develop  in  this  territory.  The 
Interstate  Commerce  Law  has  introduced  a  very  impor- 
tant factor  that  in  many  cases  modified  the  other  factors. 

(a)  Direct  Competition  of  Rival  Routes 

The  direct  competition  of  rival  routes  from  the  same 
points  or  adjacent  sections  of  origin  to  the  same  desti- 
nations, illustrated  by  those  instances  where  some  one 
terminal  line  has  independently  established  a  lower  scale 
of  rates  than  theretofore  existed,  and  other  roads  reach- 
ing these  towns  have  been  compelled  to  apply  the  same 
rates  or  lose  the  traffic.  When  the  line  of  what  is  now 
the  Seaboard  Air  Line  between  Montgomery  and  Savan- 
nah was  completed  to  a  point  near  Savannah,  there 
existed  along  the  new  route  no  place  of  commercial 
strength.    The  result  was  that  on  inbound  business  the 


38        FREIGHT  RATES:  SOUTHERN  TERRITORY 

railroad  enjoyed  but  a  single  local  haul  from  Savannah 
at  the  one  end  or  from  Montgomery  at  the  other,  each 
of  which  drew  its  supplies  from  original  sources  over 
rival  lines.  After  inducing  one  of  its  connections  from 
the  Ohio  River  to  establish  a  competitive  basis  of  divi- 
sion of  rates  to  Americus,  it  enjoyed  an  inbound  as  well 
as  an  outbound  haul;  the  other  Americus  railroad  was 
forced  to  lower  its  rates  to  avoid  loss  of  traffic.  The  town 
of  Opelika,  struggling  to  increase  the  scope  of  its  trade 
against  Columbus,  Atlanta,  and  Montgomery,  brought 
pressure  to  bear  upon  its  lines,  as  a  result  of  which  one 
of  the  lines  reduced  the  rates  from  the  Ohio  Eiver  to  the 
Columbus  basis;  the  rival  line  necessarily  had  to  meet 
the  new  adjustment.  A  further  example  is  seen  in  the 
rates  from  Eastern  Cities  to  LaGrange,  Ga. ;  enterprise 
at  this  place  had  developed  some  jobbing  business,  but 
it  was  meeting  with  difficulty  in  competing  with  Atlanta, 
Opelika,  Macon,  etc.  The  merchants  were  able  to  induce 
the  Atlanta,  Birmingham  &  Atlantic  Railroad  to  level  its 
rates  from  New  York,  in  connection  with  a  steamer  line 
which  the  railroad  controlled,  to  the  same  as  were  in 
effect  to  Atlanta.  This  gave  the  Atlanta,  Birmingham 
&  Atlantic  Railroad  an  opportunity  to  share  in  the  traffic 
for  distribution,  which  would  otherwise  have  been 
handled  to  one  of  the  three  cities  named. 

The  completion  of  the  Gulf  «&  Ship  Island  Railroad 
forced  a  reduction  in  the  rates  to  and  from  Gulfport, 
Miss.,  to  an  equal  basis  with  New  Orleans,  thus  giving 
Gulfport  an  opportunity  to  job  in  the  territory  thereto- 
fore supplied  by  the  other  two  cities  named  and  by  Jack- 
son and  Meridian,  Miss.;  to  share  in  the  traffic,  other 
lines  had  to  meet  the  new  rates.  The  some  consideration 
brought  about  the  adjustments  to  Dawson,  Cartersville, 


THE  SOUTHERN  BASING-POINT  SYSTEM  39 

Cedartown,  Athens,  and  Newnan,  Ga.,  as  well  as  to  some 
of  the  other  basing  points. 

•"4 
•  -> 

(h)    Furtherance    of    an    Individual    Carrier's    Direct 

Interest 

It  is  difficult  to  separate  this  element  from  the  one  im- 
mediately before  referred  to,  for,  inevitably,  in  the 
examples  just  given,  there  is  the  development  of  the 
direct  interest  of  the  carrier  inaugurating  the  change, 
but  in  the  cases  of  each  of  the  towns  referred  to  the  object 
was  to  create  a  jobbing  business  where  none  or  very 
little  had  previously  existed.  Under  this  second  head  are 
given  examples  of  readjustments  to  places  which  had,  at 
the  time  of  such  changes,  an  estabUshed  jobbing  business 
under  competitive  rates,  and  it  is  difficult  to  see  that  the 
scope  of  influence  of  the  places  affected  was  materially 
increased. 

Prior  to  the  construction  of  the  Kansas  City,  Memphis 
&  Birmingham  Railroad  from  Memphis,  Tenn.,  to  Bir- 
mingham, Ala.,  the  rates  between  those  places  were 
substantially  the  same  as  between  Memphis  and  Mont- 
gomery, Ala.  The  new  railroad  immediately  reduced  the 
rates  to  place  Birmingham  on  a  lower  plane  as  compared 
with  Montgomery,  and  on  a  better  relative  plane  as  com- 
pared with  Chattanooga.  While  the  adjustment  to  New 
Orleans  from  the  Central  West  was  fixed  by  water  com- 
petition, which  did  not  exist  in  nearly  so  great  a  degree 
at  Mobile,  the  Mobile  &  Ohio  Railroad,  to  the  extent  of 
its  ability  to  control  the  adjustment,  forced  a  reduction 
to  Mobile  to  the  New  Orleans  basis.  Prior  to  that  time 
the  rates  at  Mobile,  as  at  New  Orleans,  had  been  measured 
by  the  force  of  conditions  found  at  that  point.    What  has 


40        FREIGHT  RATES:  SOUTHERN  TERRITORY 

just  been  said  in  the  case  of  Mobile  may  also  be  said  of 
Pensacola,  Fla.,  which  the  Louisville  and  Nashville  Kail- 
road  subsequently  placed  on  the  Mobile  basis. 

(c)  Competition  Between  Different  Markets 

The  competition  between  the  different  markets  of  sale, 
production,  or  concentration,  in  the  East,  North,  and 
West,  in  connection  with  the  various  competing  carriers 
serving  these  rival  markets  and  all  engaged  in  contin- 
uous strife  to  further  the  sale  and  secure  the  transporta- 
tion of  goods  to  the  common  Southern  markets.  The 
principal  example  of  the  effect  of  this  kind  of  competition 
will  be  seen  in  the  future  statement  of  relative  adjust- 
ment of  rates  from  Ohio  and  Mississippi  river  crossings 
and  from  the  East  to  certain  portions  of  the  Southern 
Territory,  more  particularly  the  Southeast.  The  jealousy 
of  the  particular  lines  and  groups  of  lines  of  disturb- 
ances of  rate  conditions  under  this  relationship  which 
has  hardened  into  concrete  shape,  is  such  that  it  is  almost 
a  certainty  that  should  a  rate  from  the  East  on  a  certain 
article  of  common  production  in  the  East  and  the  West 
be  changed  to  any  destination  in  the  Southeast,  it  will 
be  followed  by  a  corresponding  reduction  in  the  rates  from 
the  Ohio  Eiver,  and  vice  versa.  Similarly,  has  the  rate 
relationship  between  the  Southern  common  points  become 
so  fixed  that  a  rate  from  the  East  or  West,  or  both,  to  a 
single  destination,  cannot  be  reduced  except  there  fol- 
lows a  readjustment  to  include  the  other  cities.  Similarly, 
are  the  rates  from  any  one  of  the  Ohio  River  Crossings 
hinged  upon  the  others  and  from  the  Mississippi  River 
Crossings  upon  those  from  the  Ohio  River.  Changes  from 
the  Mississippi  River  affect  the  Gulf  ports.    The  adjust- 


THE  SOUTHERN  BASING-POINT  SYSTEM  41 

ment  from  the  South  Atlantic  ports  has  a  great  degree 
of  relationship  with  the  rates  from  Eastern  Cities  and 
Virginia  Cities  and  the  Gulf  ports.  The  rates  from 
the  Virginia  cities  are  forced  down  with  every  reduc- 
tion from  Eastern  Cities.  This  relationship  does  not  stop 
at  the  border  of  the  territory,  however,  as  changes  from 
the  border  frequently  are  followed  by  reductions  between 
the  interior  cities,  and  invariably  so  when  the  commodity 
affected  is  of  more  or  less  common  production.  If  the 
Illinois  Central  Eailroad  lowers  the  plane  of  rates  from 
Cairo  and  St.  Louis  to  junction  points  on  its  line  in  the 
Mississippi  Valley,  the  lines  leading  from  other  Ohio 
Kiver  Crossings,  from  Nashville,  Chattanooga,  Birming- 
ham, Atlanta,  etc.,  protect  the  interests  served  by  them 
by  making  corresponding  reductions.  This  form  of 
competition  has  been  one  of  the  main  factors  in  deter- 
mining the  measure  of  rates  that  exist  at  every  common 
point  in  the  Southern  Territory.  Water  competition 
may  have  been  the  factor  in  establishing  the  rates  to  a 
given  point  from  some  one  or  more  points  of  origin,  but 
the  rivalry  of  other  markets  with  the  market  so  favor- 
ably situated  has  brought  this  other  factor  into  play. 

(d)  Competition  Between  Southern  Common  and  Com- 
petitive Points 

The  competition  between  the  Southern  common  and 
competitive  points  for  the  trade  of  the  intermediate  local 
territory  in  connection  with  the  different  carriers  reach- 
ing and  serving  these  common  points  is  an  element  which 
has  joined  with  the  previous  ones  in  determining  the 
measure  of  rates  to  each  of  the  contiguous  cities  and 
includes  a  good  deal  of  the  factor  of  individual  railroad 


42        FREIGHT  RATES:  SOUTHERN  TERRITORY 

interest  described  above.  While  so  involved,  it  neverthe- 
less arises  from  the  demands  of  the  particular  cities 
alf ected  and  their  ability  to  enforce  their  demands  by  one 
means  or  another.  There  is  a  constant  pressure  from 
every  city  to  procure  as  low  relative  rates  as  it  can  make 
the  railroads  serving  it  yield — at  least  as  low  as  its  rival 
cities,  but,  if  possible,  such  as  will  give  it  an  advantage 
over  its  rivals.  This  pressure  is  reflected  in  nearly  every 
basing-point  adjustment.  In  1904-5  the  city  of  Atlanta 
undertook  to  force  a  lower  plane  of  rates  from  the  Ohio 
River  as  compared  with  the  rates  to  Birmingham.  It 
was  able  to  secure  some  lowering  in  the  level,  but  not  to 
the  extent  demanded.  Birmingham,  at  the  present  time, 
is  demanding  a  certain  lowering  of  its  level  of  rates  as 
compared  with  those  to  Atlanta.  The  individual  inter- 
ests of  a  single  carrier  are  not  nearly  so  extensive  as  to 
be  wholly  Avithin  this  factor,  for  the  simple  reason  that 
most  of  the  carriers  have  many  communities  to  serve  and 
they  cannot,  under  the  existing  law,  in  their  own  interest 
develop,  by  an  unfair  lowering  of  rates,  a  given  place 
served  by  them,  while  ignoring  the  demands  of  the  vari- 
ous other  places  served  by  them. 

(e)  Direct  Water  Competition 

The  elements  dealt  with  in  the  preceding  paragraphs 
are  not  at  all  unique ;  they  are  existent  in  all  of  the  rate 
structures  throughout  the  United  States.  Nor  is  the  one 
of  water  competition  peculiar  to  the  South,  but,  in  this 
territory,  it  is  the  fixed  and  guiding  factor  upon  which 
was  founded  the  entire  rate  structure.  Direct  water  com- 
petition enters  into  some  of  the  adjustments  only,  but  it 
is  reflected  throughout  practically  the  whole  of  them,  and 


THE  SOUTHERN  BASING-POINT  SYSTEM  43 

in  their  final  analysis  we  inevitably  return  to  water  com- 
petition between  some  two  places  as  determining  the 
measure  of  the  rail  rates  between  other  places. 

The  water-and-rail  rates  from  Eastern  Cities  to 
Augusta  approximate  the  combined  water  rates  via 
Savannah  and  the  Savannah  Eiver,  when  insurance, 
transfer  costs,  difference  in  the  value  of  service, 
and  other  incidents  of  the  water  rates  are  considered. 
The  through  water-and-rail  rates  from  the  East  to  At- 
lanta were  originally  about  equivalent  to  the  combination 
of  water  rates  to  Savannah,  plus  the  Georgia  Commis- 
sion's rates  thence  to  destination.  The  through  water- 
and-rail  rates  from  the  East  to  Macon  were  made  taking 
into  account  the  water  rates  available  via  the  Altamaha 
River,  and  sunilarly  were  the  direct  water-and-rail 
rates  from  the  East  to  all  points  on  these  inland  water- 
ways made.  To  the  interior  points  the  direct  water-and- 
rail  rates  may  not  exceed  the  combination  of  the  vessel 
rates  to  the  ports,  plus  the  established  rail  rates  to  desti- 
nation. It  may  be  said  here  in  passing,  that  the  long- 
and-short-haul  principle  has  no  standing  in  the  admin- 
istration of  railroad  rates  by  the  commissions  either  of 
Georgia  or  Alabama,  both  of  which  frequently  make 
rates  between  common  points  lower  than  to  intermedi- 
ate points. 

Water  competition  having  measured  the  rates,  the 
other  elements  which  have  been  referred  to  come  into 
play.  The  all-rail  rates  from  the  East  must  necessarily 
be  restricted  to  comparatively  small  differences  (repre- 
senting value  of  service)  higher  than  the  direct  water- 
and-rail-route  rates.  If  the  western  markets  are  to  do 
a  share  of  the  business  at  those  basing  points  whose  rates 
from  eastern  markets  have  been  fixed  by  the  water  routes, 


44        FREIGHT  RATES:  SOUTHERN  TERRITORY 

they  must  be  adjusted  on  a  correspondingly  low  plane. 
If  Atlanta  is  to  do  a  share  of  the  trade  as  against  Augusta, 
her  rates  from  the  East  must  not  be  materially  higher  than 
the  corresponding  ones  to  Augusta,  and  the  rates  from  the 
West  must  not  be  too  great  as  compared  with  those  from 
the  East.  A  railroad  serving  Birmingham,  but  not  At- 
lanta, has  its  interests  necessarily  centered  in  Birming- 
ham and  feels  obligated  to  do  all  it  can  to  further  Bir- 
mingham's trade  as  against  Atlanta's. 

It  has  been  previously  shown  how  the  rates  at  the  Coast 
and  Gulf  cities  and  on  the  navigable  waterways  leading 
from  these  cities  have  been  fixed,  so  far  as  the  rates  from 
the  East  are  concerned,  by  the  direct  water  competition. 
It  will  be  interesting  to  note  some  of  the  instances  where 
the  same  force  has  worked  between  inland  cities  served 
by  navigable  rivers.  The  main  element  fixing  rates  be- 
tween points  on  the  Mississippi  Eiver  was,  of  course,  the 
boat  service  on  that  river,  although  other  influences 
helped  to  fix  the  measure  of  some  of  the  rates.  In  the 
adjustment  from  St.  Louis  to  cities  south  of  Memphis, 
including  New  Orleans,  reached  by  the  rail  lines,  we  have 
an  evidence  of  the  custom  of  the  river  carriers  in  group- 
ing a  long  stretch  of  territory  under  one  line  of  rates, 
reflected  in  the  rail  adjustment,  where  rates  from  St. 
Louis  to  New  Orleans  were  applied  to  each  of  the  cities 
south  of  Memphis  (a  stretch  of  several  hundred  miles) ; 
the  adjustment  illustrates  the  fact  that  water  competition 
controls,  whether  the  place  of  destination  is  or  is  not 
reached  by  some  other  railroad,  for  the  rates  to  Friars 
Point  and  Rosedale,  Miss.,  local  stations  on  the  Yazoo 
&  Mississippi  Valley  Railroad,  are  precisely  the  same  as 
those  to  Greenville,  Vicksburg,  and  New  Orleans,  which 
are  common  points.    There  is  a  further  illustration  of  this 


THE  SOUTHERN  BASING-POINT  SYSTEM  45 

iustance  of  water  control  in  the  fact  that  the  river  in- 
terests break  their  rate-grouping  at  Memphis,  so  that 
the  rates  to  that  place  are  materially  less  than  to  Friars 
Point,  70  miles  south,  although  the  rates  to  Friars  Point 
are  the  same  as  to  New  Orleans,  which  is  over  400  miles 
south  of  it.  In  the  meeting  of  direct  water  competition, 
a  railroad  can  be  no  respecter  of  distances. 

Water  competition  on  the  Cumberland  River  fixed  the 
measure  of  the  rail  rates  between  Evansville  and  Hen- 
derson on  the  one  hand  and  Nashville  and  Clarksville  on 
the  other,  on  the  Ohio  and  Kentucky  rivers  between  Lou- 
isville and  Frankfort,  on  the  Green  and  Barren  rivers 
between  Bowling  Green  and  Evansville,  on  the  Tennessee 
River  between  Paducah  and  Florence,  Sheffield,  Tuscum- 
bia,  Decatur,  Chattanooga,  and  Knoxville ;  in  fact,  in  all 
cases  where  two  places  are  on  any  connected  stretch  of 
navigable  river  and  also  on  a  railroad.  In  these  cases 
comes  into  play,  secondarily,  the  other  rate-making 
elements  which  have  been  discussed.  While  there  is 
water  service  between  Louisville  and  Nashville,  it  has 
to  pass  the  doors  of  Evansville  and  Henderson;  Evans- 
ville is  substantially  the  same  distance  by  rail  from 
Nashville  as  is  Louisville,  and  market  competition  de- 
manded rates  so  as  to  permit  Louisville  to  compete  with 
Evansville.  The  rates  from  Louisville  to  Memphis  and 
other  lower  Mississippi  River  points  are  the  same  as  from 
St.  Louis,  because  there  was  through  water  competition 
which  enabled  Louisville  to  secure  water  rates  competi- 
tive with  St.  Louis.  Cincinnati  had,  however,  to  pay 
somewhat  higlier  water  rates ;  hence,  her  rail  rates  were 
also  somewhat  hiiiiier  than  from  Louisville  and  St.  Louis. 


46         FREIGHT  RATES:  SOUTHERN  TERRITORY 

(/)  Indirect  Water  Competition 

This  element  is,  in  a  great  measure,  subsidiary  to  direct 
competition,  but  as  there  necessarily  enters  into  it,  in  a 
great  degree,  the  elements  of  carrier  and  market  compe- 
tition, it  must  be  regarded  as  somewhat  apart  from  the 
other.  When  we  speak  of  the  rates  from  the  Ohio  Riv'er 
to  Augusta,  Ga.,  being  made  to  enable  the  Central  West 
to  compete  with  the  East,  which  has  water-made  rates  to 
Augusta,  we  deal  with  it  as  a  matter  of  market  competi- 
tion. Nevertheless,  such  instances  may  be  taken  as  a 
potent  form  of  indirect  water  competition.  There  are, 
however,  numerous  instances  w^here  the  element  of  mar- 
ket competition  has  not  been  an  influence.  The  rail  rates 
from  St.  Louis  to  Jackson,  Miss.,  v\'ere  fixed  substantially 
by  the  water  rates  to  Vicksburg,  added  to  the  44-mile  rail 
rates  thence  to  destination.  Some  of  the  rail  rates  between 
Vicksburg  and  Jackson  were  forced  to  a  very  low  plane 
by  the  Mississippi  Commission,  which,  by  the  way,  has  not, 
in  many  of  its  rate  decisions,  regarded  the  long-and-short- 
haul  principle.  Just  as  were  the  rail  rates  from  Ohio 
River  Crossings  to  Vicksburg  proper  measured  by  the 
rates  of  the  boat  lines,  just  so  were  the  rates  to  Jackson 
measured.  Montgomery  and  Selma,  Ala.,  are  other 
points  in  evidence,  as  the  maximum  rail  rates  from  the 
Ohio  River  to  those  points  take  into  account  the  rates  to 
Mobile  and  thence  on  the  Alabama  River.  The  Jackson 
situation,  as  outlined,  is  true  also  at  places  like  Green- 
wood and  Winona,  Miss.  Through  rail  rates  from  the 
East  to  rail  points  not  on  rivers  in  Georgia  and  Alabama 
are  measured  by  the  water  rates  to  coast  cities,  plus  the 
rail  rates  to  destination. 


THE  SOUTHERN  BASING-POINT  SYSTEM  47 

{g)  Legal  Requirements 

A  number  of  basing  points  have  been  created  as  such 
by  orders  of  the  Interstate  Commerce  Commission,  which, 
after  hearings,  concluded  that  the  carriers  had  not  recog- 
nized fully  the  rights  of  these  places,  or,  having  estab- 
lished competitive  rates  in  furtherance  of  individual 
interests,  they  had  thereby  discriminated  against  the 
places  complaining.  Basing  points  having  adjustments 
resulting  from  the  Commission's  orders,  either  as  con- 
cerns the  western  or  the  eastern  points  of  origin,  or 
both,  and  from  related  points,  are  Tifton,  Vienna,  Monte- 
zuma, LaG-range,  Dawson,  Moultrie,  and  Cordele,  Ga. 


CHAPTER  IV 

WATER    TRANSPORTATION    IN    SOUTHERN    TERRITORY 

Owing  to  the  preponderant  weight  of  the  water  com- 
petitive forces,  past,  present,  and  potential,  within  and 
around  the  territory,  which  have  overborne  all  other  in- 
fluences, it  is  desirable  that  a  chapter  be  devoted  to  an 
outlined  description  of  available  routes  and  service  on 
the  waterways. 

1.    EXPENDITUEES   OF   THE   NaTIOXAL   GOVERNMENT 

Any  discussion  of  this  subject  would  be  incomplete 
without  some  explanation  of  the  very  great  aid  that  the 
federal  government  has  given  to  the  development  of  the 
commerce  of  the  rivers  and  of  the  ocean.  The  report  of  the 
Secretaiy  of  the  Treasury,  made  to  Congress  March  6, 
1912,  shows  that  the  aggregate  of  the  expenditures  for 
river  and  harbor  improvements  in  the  United  States 
from  the  foundation  of  the  government  up  to  the  close 
of  the  fiscal  year  ended  June  30,  1911,  reached  the  enor- 
mous total  of  $627,098,236.  This  is  exclusive  of  the 
expenditures  for  the  Panama  Canal. 

The  following  summary  shows  the  disposition  of  the 
allotment  of  expenditures  to  the  Southern  States : 

Virgin  ia — 

James    River $  2,086,957 

ApiX)iuattox    River 741,330 

Jame«  and  Appomattox   Rivers  jointly 710,231 

48 


WATER  TRANSPORTATION  49 

Norfolk    Harbor. 2,588,224 

Rappahannock    River 502,023 

Smaller   Rivers   and   Harbors 1,807,953 

Total    Expenditures 8,436,718 

North  Carolina — 

Cape    Fear    River 4,760,993 

Waterway  between  Pamlico  Sound  and  Beaufort  Inlet . .  503,500 

Smaller  Waterways  and  Harbors 2,192,564 

Total    Expenditures 7,457,057 

South  Carolina — 

Charleston    Harbor 4,935,197 

Winyah    Bay 2,500,161 

Smaller  Waterways  and  Harbors   2,335,605 

Total    Expenditures    9,770,963 

Georgia — 

Savannah  Harbor   , 8,443,703 

Savannah   River    1,176,285 

Brunswick   Harbor    1,252,^44 

Altamaha,   Oconee,   Ocmulgee,   Chattahoochee  Rivers 1,500,924 

Total   Expenditures 32,373,856 

Florida — 

St.  John's  River    4,813,003 

Tampa    Bay    740,011 

Key   West   Harbor    703,000 

Smaller  Rivers  and   Harbors    4,949,044 

Total    Expenditures    11,205,058 

Alabama — 

Mobile  Bay  and  Harbor   5,870,652 

Alabama    River    799,975 

Black  Warrior  River  735,629 

Smaller  Waterways    218,423 

Total  Expenditures   7,624,679 

Mississippi — 

Pascagoula   River    1,048,274 

Yazoo  River    1,079,577 

Mississippi  River  in  vicinity  of  Vicksburg 349,000 


50        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Gulfport  Harbor    374,446 

Smaller  Waterways    1,903,889 

Total  Expenditures    4,755,186 

Tennessee — 

Mississippi   River  near  Memphis 258,000 

Tennessee  and  Cumberland  Rivers   441,028 

Total  Expenditures    699,028 

Kentucky — 

Kentucky   River    3,626,271 

Green   River    535,428 

Green  and  Barren  Rivers  jointly  135,000 

Tennessee  and  Cumberland  Rivers   380,345 

Total    Expenditures    4,677,044 

The  report  of  the  Secretary  also  shows  large  expendi- 
tures on  the  different  rivers  within  Southern  Territory 
or  adjacent  thereto,  these  not  being  separable  by  states. 
Among  such  disbursements  should  be  mentioned  $23,- 
548,338.15  on  the  Ohio  River  and  $121,142,554.41  on  the 
Mississippi  Eiver.  This  portion  of  the  report  also  shows 
expenditures  on  the  Black  Warrior  and  the  Tombigbee 
rivers  in  Alabama  and  Mississippi  amounting  to  $3,929,- 
775.97,  on  the  Chattahoochee  River  in  Georgia  and  Ala- 
bama amounting  to  $620,025.95,  on  the  Chattahoochee 
and  the  Flint  rivers  in  Georgia,  Florida,  and  Alabama 
amounting  to  $133,000.00,  on  the  Coosa  River  in  Georgia 
and  Alabama  amounting  to  $1,553,594.08,  and  on  the 
Cumberland  River  in  Kentucky  and  Tennessee  amounting 
to  $4,050,532.18. 

It  will  be  found  that  out  of  these  disbursements  of  up- 
wards of  $627,000,000.00  for  river  and  harbor  improve- 
ments in  the  United  States  approximately  one-third  has 
been  expended  either  on  the  Mississippi  and  the  Ohio 


WATER  TRANSPORTATION  51 

rivers  or  on  the  coast  line  of  the  Southern  States  from  the 
Chesapeake  to  the  Mississippi  and  the  rivers  which  pene- 
trate these  states.  All  of  this  is  highly  indicative  of  the 
great  activity  which  the  federal  government  has  exercised 
in  the  development  of  the  rivers,  harbors,  and  canals  of 
the  Southern  Territory.  Apparently,  the  government 
designs  to  make  of  the  Ohio,  the  Mississippi,  the  James, 
the  Alabama,  the  Tombigbee,  the  Chattahoochee,  the 
Ocmulgee,  the  Savannah,  the  Cumberland,  and  the  Ten- 
nessee rivers  great  national  free  highways  for  the  carriage 
of  the  commerce  of  this  country.  How  far  this  intention 
has  been  realized  can  be  ascertained  only  by  an  exam- 
ination of  the  tonnage  and  character  of  traffic  moving  on 
these  rivers. 

2.  Water  Service  between  North  Atlantic  Ports  and 
South  Atlantic  and  Gulf  Ports 

(a)  The  Important  Lines 

Probably  no  water  service  between  any  two  points  in 
the  United  States  is  more  efficient  than  is  the  water  serv- 
ice furnished  by  the  ships  on  the  Atlantic  Ocean  plying 
between  the  North  Atlantic  ports  and  the  South  Atlantic 
and  Gulf  ports.  Among  the  principal  steamship  lines 
furnishing  service  of  this  character  should  be  mentioned 
the  following : 

Number  of 
Name  of  Sailings  sailings  per 

Steamer  Line  between  week  each 

way 
Old  Dominion  S.  S.  Co.  N.  Y.  and  Norfolk  Harbor  points..  6 

Southern  S.  S.  Co.  Philadelphia    and    Charleston    and 

Jacksonville    and   Tampa 1 


52  FREIGHT  RATES :  SOUTHERN  TERRITORY 

Number  of 
Name  of  Sailings  sailings  per 

Steamer  Line  between  week  each 

way 

Clyde   S.    S.  Co.  New     York     and     Charleston     and 

Jacksonville    4 

New   York   and   Brunswick 2 

Boston    and    Charleston    and    Jack- 
sonville      2 

Ocean  S.  S.  Co.  New  York   and   Savannah 3 

Boston  and  Savannah   2 

Baltimore    &    Carolina    S.    S.         Baltimore  and  Georgetown,  S.  C, 
Co.  and   Charleston    1 

Merchants    &    Miners    Trans-      Boston    and    Norfolk 3 

portation  Co.  Providence    and    Norfolk 3 

Baltimore    and    Norfolk 3 

Baltimore    and    Savannah 3 

Philadelphia  and  Savannah  and 

Jacksonville    3 

Mallory  S.  S.  Co.  New   York   and   Key   West,   Tampa 

and  Mobile   1 

Philadelphia  &  Gulf  S.  S.  Co.      Philadelphia  and  New  Orleans  and 

Charleston    3i 

Southern  Pacific  S.  S.  Line.         New  York  and  New  Orleans 2 

^  Per  month. 


(h)  The  Important  Ports  and  Boat  Service 

The  port-to-port  business  of  Charleston,  Savannah, 
Brunswick,  and  Jacksonville  is  of  great  importance. 
During  the  calendar  year  1911,  1,005  vessels  entered  the 
port  of  Charleston,  of  which  873  carried  the  United  States 
flag.  Presumably  all  of  these  vessels  under  the  United 
States  flag  were  engaged  in  coastwise  traffic.  There  were 
forwarded  from  Charleston  by  schooner  to  eastern  ports 
during  the  calendar  year  1911,  106  vessel  loads  of  lum- 
ber, containing  47,191,107  feet,  and  7  vessel  loads  of  phos- 
phate rock,  containing  6,789  tons. 


WATER  TRANSPORTATION  63 

The  most  important  port  in  Georgia  is  Savannah  on 
the  Savannah  Eiver,  eighteen  miles  from  the  sea.  In 
1906,  Savannah  ranked  fourth  among  the  ports  of  the 
Atlantic  Coast  of  the  United  States.  Besides  the  coast- 
wise service  previously  outlined,  Savannah  is  served  by 
the  Savannah  &  Bluffton  Steamship  Line  between  Savan- 
nah and  Bluffton,  by  the  Merchants  &  Farmers  Naviga- 
tion Company  and  by  the  Augusta  &  Savannah  Steamship 
Company,  each  of  which  lines  has  two  boats  and  averages 
two  sailings  per  week  between  Savanah  and  Augusta. 
During  the  year  1911,  the  tonnage  from  and  to  foreign 
countries  amounted  to  277,856  tons  entered  and  414,315 
tons  cleared. 

Brunswick,  another  port  of  considerable  importance, 
is  situated  eighty  miles  south  of  Savannah.  In  addition 
to  the  Clyde  Steamship  Company  she  is  served  by  the 
Brunswick  &  Florida  Steamboat  Company,  which  fur- 
nishes a  service  six  times  a  week  between  Brunswick, 
Ga.,  and  Fernandina,  Fla.,  and  a  service  six  to  twelve 
times  a  week  between  Brunswick  and  St.  Simons,  Ga. 
The  Brunswick  &  Satilla  Steamboat  Company  furnishes 
service  three  times  a  week  between  Brunsmck  and  Burnt 
Fork,  Ga.,  and  the  Brunswick,  St.  Simons  &  Darien  Com- 
pany furnishes  service  six  times  a  week  between  Bruns- 
wick and  Darien,  Ga.  Clearances  and  entrances  of  all 
ships  in  the  foreign  trade  at  Brunswick  during  the  year 
1911  show  entrances  of  74  steamships  and  15  sailing 
vessels  and  clearances  of  70  steamships  and  13  sailing 
vessels.  Clearances  and  entrances  of  all  ships  in  the 
coastwise  trade  of  Brunswick  during  the  year  1911  show 
entrances  of  143  steamships  and  122  sailing  vessels  and 
clearances  of  142  steamships  and  124  sailing  vessels. 
During  the  same  year,  there  were  about  200  departures 


54         FREIGHT  RATES:  SOUTHERN  TERRITORY 

from,  and  the  same  number  of  arrivals  at,  Brunswick 
of  steamboats  doing  business  on  the  Satilla  River. 

The  most  important  port  of  Florida  is  Jacksonville, 
situated  on  the  west  bank  of  the  St.  John's  River,  about 
14  miles  from  its  mouth  and  355  miles  south  of  Savannah. 
The  river  is  navigable  for  steamboats  200  miles  above 
Jacksonville.  Jacksonville  is  served  by  the  Jacksonville 
&  Mayport  Steamship  Line  with  six  sailings  a  week  be- 
tween Jacksonville,  Fla.,  and  Fulton,  Fla. ;  The  Clyde's 
St.  John's  River  Line  between  Jacksonville  and  Enter- 
prise, Fla.,  the  Beech  &  Miller  steamers  on  the  St.  John's 
River  between  Jacksonville  and  Crescent  City,  Fla.,  and 
the  Inter-Ocean  Steamship  Company  between  Jackson- 
ville and  Palatka,  Fla.,  each  with  three  sailings  a  week; 
and  the  Independent  Line,  which  furnishes  a  service  six 
times  a  week  between  Jacksonville  and  Green  Cove 
Springs,  Fla.  All  of  this  is  in  addition  to  the  coastwise 
service  above  stated.  In  the  year  1911,  there  were  3,492 
arrivals  and  clearances  of  vessels  in  the  coastwise  trade 
and  239  in  the  foreign  trade.  The  value  of  the  imports 
during  that  year  Avas  $1,086,270.35,  while  the  value  of  the 
exports  for  the  first  eleven  months  was  $2,141,358.26. 

A  South  Carolina  port  of  less  importance  is  Port  Royal. 
The  town  is  on  an  island  near  Port  Royal  Entrance,  four 
miles  south  of  Beaufort,  and  has  water  service  furnished 
by  the  Beaufort  &  Savannah  Line  with  from  three  to  six 
sailings  a  week  between  that  port  and  Savannah,  Ga. 

Another  Florida  port  of  constantly  increasing  impor- 
tance is  Tampa,  which  is  located  at  the  head  of  Tampa 
Bay  at  the  mouth  of  the  Hillsboro  River,  240  miles  south- 
west of  Jacksonville.  Besides  the  Mallory  Steamship 
Line  and  the  Southern  Steamship  Company,  it  is  served 
by  the  Tampa,  Hunter's  Point  &  Sarasota  Steamboat 


WATER  TRANSPORTATION  55 

Company,  plying  between  Tampa  and  Sarasota,  Fla., 
three  times  a  week ;  by  the  St.  Petersburg  Transportation 
Company  plying  between  Tampa  and  Ellington,  Fla.,  four 
times  a  week ;  and  by  the  Penn  Steamship  Line  every  ten 
days  between  New  Orleans,  La.,  and  Tampa,  Fla. 

The  most  important  Gulf  port  on  the  Gulf  of  Mexico 
is  New  Orleans,  La.  It  is  located  on  the  east  bank  of  the 
Mississippi  River  distant  about  100  miles  from  its  mouth. 
In  addition  to  the  eastern  service  of  the  Philadelphia  & 
Gulf  Steamship  Company  and  the  Southern  Pacific 
Steamship  Line,  it  enjoys  a  very  large  vessel  service  in 
every  direction  open  by  water.  The  total  number  of  ves- 
sels engaged  in  the  foreign  trade  that  entered  the  port 
of  New  Orleans  during  the  calendar  year  1911  was  1,101, 
of  which  1,085  were  steamships  and  16  were  sailing  ves- 
sels. During  the  same  period  1,118  vessels  engaged  in 
the  foreign  trade  cleared  from  the  port  of  New  Orleans, 
of  which  1,102  were  steamships  and  16  were  sailing  ves- 
sels. The  Dock  Board  reports  1,497  steamboat  arrivals 
at  New  Orleans  during  the  year  1911,  298  arrivals  of 
miscellaneous  craft,  consisting  of  flat  boats,  coal  and 
gravel  barges,  tugs,  transportation  barges,  etc.,  and 
2,142  arrivals  of  luggers,  gasoline  boats,  etc.,  engaged 
in  the  oyster,  fish,  vegetable,  and  small  merchandise 
trade.  New  Orleans  was  founded  in  1718  and  had  a 
population  of  approximately  150,000  prior  to  the  build- 
ing of  any  railroads  connecting  it  with  the  Ohio  River 
cities.  Through  all  the  early  years  in  the  history  of  New 
Orleans  one  can  note  a  steadily  increasing  tonnage  of 
freight  received  via  the  Mississippi  River :  for  the  fiscal 
years  ended  September  1,  1822,  136,400  tons  were  re- 
ceived; 1832,  244,600  tons;  1842,  566,500  tons;  1852, 
1,160,500  tons;  1860,  2,187,560  tons.     The  first  annual 


56        FREIGHT  RATES:  SOUTHERN  TERRITORY 

report  on  the  internal  commerce  of  the  United  States  for 
the  fiscal  year  ended  June  30, 1876,  shows  that  the  tonnage 
received  at  New  Orleans  during  the  year  1875  by  the  Mis- 
sissippi River  was  724,198  tons,  while  the  total  amount 
brought  in  by  the  railroads  during  the  same  period  was 
216,940  tons.  During  the  same  year  236,694  tons  were 
shipped  out  by  the  Mississippi  River,  while  only  166,396 
tons  were  shipped  out  by  rail.  This  same  report  shows 
that  for  the  fiscal  year  ended  June  30,  1876,  the  total  re- 
ceipt of  cotton  at  New  Orleans  was  1,424,003  bales,  of 
which  1,105,393  bales,  or  78  per  cent,  were  brought  in 
by  river.  The  value  of  the  exports  from  New  Orleans  in 
1880  amounted  to  $90,000,000;  in  1910,  to  $140,000,000; 
and  in  1911,  to  $172,789,754.  In  1911  its  foreign  receipts 
were  2,019,067  tons  and  its  clearances  2,249,883  tons. 

Mobile,  Ala.,  is  another  port  of  considerable  importance 
on  the  Gulf  of  Mexico,  it  being  third  in  point  of  volume 
of  tonnage.  It  is  situated  on  the  west  bank  of  the  Mobile 
River  at  its  entrance  into  the  bay  of  the  same  name,  30 
miles  from  the  Gulf  of  Mexico  and  140  miles  east  of  New 
Orleans.  Mobile  is  served  by  the  Mallory  Steamship 
Company  heretofore  mentioned  and  by  the  Pensacola, 
St.  Andrews  &  Gulf  Steamship  Company  once  a  week 
between  Mobile  and  Gulf  ccast  points  as  far  as  Carra- 
belle,  Fla.  A  steamboat  line  furnishes  a  service  once  a 
week  to  Selma  and  Montgomery,  Ala.,  and  twice  a  week 
to  Demopolis  and  Tuscaloosa,  Ala.  Mobile  has  an  ad- 
vantageous position  for  trade,  it  being  the  natural  outlet 
of  one  of  the  great  cotton  regions  of  the  United  States. 
The  total  number  of  vessels  that  entered  the  port  of 
Mobile  during  the  year  1911  was  673,  of  which  142  were 
sailing  vessels  and  532  steamships.  Foreign  receipts  in 
the  same  year  amounted  to  677,445  tons  and  clearances 


WATER  TRANSPORTATION 


57 


amounted  to  743,559  tons.  The  total  value  of  the  exports 
through  the  port  for  the  year  1911  was  $30,154,037,  while 
the  value  of  the  imports  during  the  same  period  was 
$4,031,737. 

Pensacola,  Fla.,  located  on  the  bay  of  that  name,  has 
the  finest  natural  harbor  on  the  Gulf  Coast  and  ranks 
next  after  Mobile  in  importance  of  foreign  trade.  The 
Pensacola,  St.  Andrews  &  Gulf  Steamship  Company  gives 
it  regular  water  connection  with  Mobile  and  ports  east  as 
far  as  Carrabelle,  Fla. 

3.  Shipments  from  Principal  South  Atlantic  and  Gulf 

Ports 

The  report  of  the  Chief  of  Engineers  of  the  United 
States  Army  for  the  calendar  year  1910  gives  the  total 
amount  of  the  waterborne  shipments  at  the  principal 
South  Atlantic  and  Gulf  ports  named  below : 


At 
Norfolk,   Va. 


Tons 
.  12,477,501 


Wilmington,  N.  C.  944,657 

Charleston,    S.    O.  1,111,952 

Savannah,    Ga.    ..  2,920,060 

Brunswick,   Ga 784,542 

Fernandina,   Fla..  578,645 

Jacksonville,   Fla,.  1,736,912 


Consisting  principally  of 
Coal,  cotton,  fertilizers,  forest  and  agri- 
cultural   products,    and    general    mer- 
chandise. 

Cotton,  cottonseed  meal,  naval  stores, 
fertilizers,  coal,  forest  products,  and 
general  merchandise. 
Cotton,  cotton  goods,  fertilizer  mater- 
ials, provisions,  general  merchandise. 
Naval  stores,  fertilizer  produce,  iron, 
cotton,  lumber,  and  general  merchan- 
dise. 

Cotton,  lumber,  cross  ties,  naval  stores, 
and  general  merchandise. 
Lumber,  phosphate  rock,  naval  stores, 
etc. 

Coal,  cement,  fertilizer  materials, 
lumber,  oil,  phosphate  rock,  steel  rails, 
and  general  merchandise. 


58        FREIGHT  RATES:  SOUTHERN  TERRITORY 

At  Tons  Consisting  principally  of 

Key  West,  Fla . . .  438,776  Cattle,  cement,  cigars,  cross  ties,  rail- 
road iron,  sandstone,  gravel,  tobacco, 
distilled  water,  and  general  mer- 
chandise. 

Tampa,  Fla 2,240,549  Coal,     fruits,     fertilizers,     logs,     naval 

stores,  crude  oil,  phosphate,  tobacco, 
vegetables,  and  general  merchandise. 

Pensacola,  Fla.   . .      922,870  Cotton,  naval  stores,  lumber,  fertilizer 

materials,  mahogany,  and  general  mer- 
chandise. 

Mobile,    Ala 1,193,203  Cotton,     cotton    products,    breadstuffs, 

hog  products,  lumber  and  timber,  ba- 
nanas, and  sisal  grass. 

New  Orleans,  La.  4,300,209  Cotton,    forest    products,    fruits,    and 

wide  range  of  merchandise. 

4.  Number  of  Vessels  and  Tonnage  in  the  Southeast 

The  report  of  the  Commissioner  of  Corporations  on 
Transportation  by  Water,  published  by  the  Department 
of  Commerce  and  Labor,  part  I,  Table  XXII,  under  the 
caption  of  ' '  Operating  Agencies  of  Vessels  in  the  United 
States  in  1907,"  shows  the  following  number  of  vessels 
and  the  tonnage  handled  by  such : 

steam 
Vessels  Barges  Tonnage 

Atlantic    Coast    95  86        158,393 

Alabama  River   1  209 

Apalachicola   River    1  154 

Cape  Fear  River  5  506 

Coosa  River   2  209 

Cumberland  River 6  1,427 

Flint   River    3  500 

Gulf  Coast   16  5,062 

James   River    1  814 

Mississippi  River    45  8          18,517 

Ohio  River    14  17            9,226 

Peedee   River    4  405 

Santee  River 1  62 

Savannah   River 4  2,192 


WATER  TRANSPORTATION  59 

The  report  shows  also  a  large  number  of  vessels  en- 
gaged exclusively  in  one  class  of  traffic,  such  as  the  car- 
riage of  lumber,  coal,  etc.  It  shows  also  a  limited  number 
of  towing  lines,  some  of  which  are  engaged  on  the  rivers 
flowing  through  the  South  Atlantic  States  and  the  Gulf 
States. 

The  report  also  shows  123  steamships  and  5,758  barges 
with  a  combined  tonnage  capacity  of  3,559,878  tons  en- 
gaged in  coal  traffic  on  the  Ohio  and  the  Mississippi  rivers 
and  their  tributaries.  Of  this  number  83  steamers  and 
4,070  barges,  with  a  combined  tonnage  capacity  of  2,809,- 
052  tons,  are  owned  by  one  company  and  operated  from 
Pittsburgh  to  New  Orleans  and  intermediate  points. 
The  report  also  shows  a  limited  number  of  towing  corpo- 
rations engaged  in  business  on  the  Mississippi  and  Ohio 
rivers  and  their  tributaries. 

5.  Principal  Navigable  Streams 

The  principal  navigable  streams  flowing  into  the  At- 
lantic Ocean  south  of  the  Potomac  River  are  the  Rappa- 
hannock, Pamunkey,  the  York,  the  Chickahominy,  the 
James,  the  Cowan,  the  Roanoke,  the  Tar,  the  Neuse, 
the  Black,  the  Cape  Fear,  the  Waccanaw,  the  Pedee,  the 
Little  Pedee,  the  Wateree,  the  Congaree,  the  Santee, 
the  Edisto,  the  Savannah,  the  Oconee,  the  Ocmulgee,  the 
Altamaha,  the  St.  Mary's,  and  the  St.  John's  rivers. 

The  principal  navigable  streams  emptying  into  the 
Gulf  of  Mexico  are  the  Suwanee,  the  Chattahoochee,  the 
Flint,  the  Apalachicola,  the  Mobile,  the  Alabama,  the 
Tombigbee,  the  Warrior,  the  Pascagoula,  the  Pearl,  and 
the  Mississippi  rivers.  The  principal  navigable  tributa- 
ries of  the  Mississippi  River  emptying  into  the  Missis- 


60         FREIGHT  RATES:  SOUTHERN  TERRITORY 

sippi  from  the  east  are  the  Yazoo,  the  Big  Sunflower,  the 
Tallahatchie,  the  Big  Black,  and  the  Ohio  rivers.  The 
principal  tributaries  of  the  Ohio  River  are  the  Tennessee, 
the  Cumberland,  the  Green,  the  Barren,  the  Kentucky, 
the  Big  Sandy,  the  Great  Kanawha,  and  the  Little  Ka- 
nawha rivers. 

6.  Tonnage  on  Difpeeent  Rivers  During  1910 

In  the  following  table  has  been  compiled  the  actual  ton- 
nage moving  on  the  different  rivers  in  Southern  Terri- 
tory during  the  calendar  year  1910.  This  is  taken  from 
the  annual  report  of  the  Chief  of  Engineers  of  the  United 
States  Army  for  the  year  1911 : 

Tons 

Virginia  Rivers    3,547,521 

North    Carolina    Rivers 1,363,742 

Soutli    Carolina    Rivers 651,643 

Georgia    Rivers    135,596 

Florida  Rivers   491,763 

Alabama    Rivers    480,161 

Mississippi   Rivers    1,973,632 

The  Mississippi  River 

Between  St.  Louis  and  Cairo 289,759 

Between  Cairo  and  Memphis 1,039,195 

Between  Memphis  and  Vicksburg 980,386 

Between  Vicksburg  and  New  Orleans 1,530,230 

Tennessee   Rivers    1,567,407 

The    Ohio    River 11,112,216 

West    Virginia    Rivers 1,562,408 

The   Kentucky   River 254,721 

7.  Water  Transportation  at  Present  Compared  with 

That  of  the  Past 

In  earlier  days  when  the  Southern  States  were  not  so 
ramified  with  railroads,  the  transportation  service  on  the 


WATER  TRANSPORTATION  61 

various  inland  waterways  was  much  greater  than  at  the 
present  time.  In  that  period  manufacturing  and  trade 
found  the  lines  of  least  resistance  in  the  channels  of  water 
transportation,  and  those  sections  and  cities  were  the 
strongest  which  could  best  avail  themselves  of  this 
auxiliary  of  commerce.  At  the  present  time  the  condi- 
tions have  so  materially  changed  that,  as  compared  with 
forty  or  sixty  years  ago,  the  number  of  steamboats  has 
greatly  lessened,  although  barge  transportation  is  prob- 
ably greater  now  than  in  the  heyday  of  steamboating. 
This  change  is  due  to  a  logical  evolution.  The  river  cities, 
no  longer  dominating  in  the  production  and  distribution 
and  being  the  gateways  of  trade,  sections  and  cities  which, 
being  more  or  less  remote  from  available  water  highways, 
rely  on  rail  transportation  for  the  whole  or  a  part  of  any 
given  service  required,  have  sprung  into  being  and  prom- 
inence. Promptness  and  regularity,  attributes  which  are 
always  before  rail  carriers,  are  of  ever-increasing  impor- 
tance to  trade.  Today,  water  transportation  is  largely 
that  of  service  between  the  towns  and  country  side  on  or 
closely  adjacent  to  the  waterways,  and  there  boat  trans- 
portation will  always  be  in  control  of  the  rate  situation. 
Notwithstanding  the  lessened  amount  of  steamboat 
transportation,  the  influence  which  was  so  compelling  in 
creating  the  present  rail  rate  structures  and  in  fixing  the 
plane  or  measure  of  the  rates  themselves,  will  continue. 
Between  waterside  towns,  in  most  instances,  the  active 
competition  of  the  boats  with  the  rail  lines  continues,  but 
the  potentiality  of  the  old  competition  remains  in  any 
event,  not  only  because  the  raising  of  the  rail  rates  would 
be  an  open  invitation  to  an  immediate  increase  in  the  boat 
service,  but  because  public  policy  voiced  in  legislative 
enactments  has  provided  against  advances  after  active 


62         FREIGHT  RATES:  SOUTHERN   TERRITORY 

competition  has  lessened  or  ceased.  The  indirect  poten- 
tiality of  water  competition,  which  had  its  expression  in 
the  relative  adjustment  from  places  not  subject  to  direct 
water  competition  or  where  joint  water-and-rail  competi- 
tion had  an  influence,  must  likewise  continue. 

Coastwise  service  along  the  eastern  and  southern 
boundaries  of  the  territory,  far  from  lessening,  is,  in  the 
aggregate,  gradually  increasing. 


TEST  QUESTIONS 

These  questions  are  for  the  student  to  use  in  testing 
his  knowledge  of  the  assignment.  The  answers  should 
be  written  out,  but  are  not  to  be  sent  in  to  the  University. 

1.  Define  the  boundaries  of  Southern  Territory. 

2.  What  is  the  basic  principle  of  rate  construction? 

3.  What  is  the   controlling  factor  in  rate-making  in  this 
territory  ? 

4.  Illustrate  the  effect  of  market  competition. 

5.  With  the  rates  of  what  other  territory  do  those  applied 
in  Southern  Territory  favorably  compare? 

6.  Define  the  boundaries  of  Seaboard  Territory. 

7.  Mention  ten  points  in  Southeastern  Territory. 

8.  What  are  the  principal  port  cities  in  Carolina  territory? 

9.  What  states  are  included  in  Mississippi  Valley  territory? 

10.  Discuss  briefly  the  development  of  the  southern  basing 
points. 

11.  For  what  purpose  were  the  early  railroads  constructed  in 
this  territory? 

12.  During  what  period  was  the  southern  rate  structure  as  it 
stands  today  developed  ? 

13.  What  is  the  distinction  between  a  common  point  and  a 
basing  point? 

14.  To  what  cause  may  the  establishment  of  the  so-called 
"artificial  base  points"  be  attributed? 


63 


64  TEST    QUESTIONS 

15.  AVhat  aro  the  most  important  factors  in  sonthern  rate- 
making? 

16.  Give  an  illustration  of  direct  eompetiliou  Ix^ween  rival 
routes. 

17.  AVhat    are    llie    nutre    important   rivers   in   the    state    of 
Georgia  ? 

18.  Enumerate  some  of  the  water  carriers  serving  the  South 
Atlantic  jjorts. 

19.  Of  what  products  does  the  hulk  of  commerce  in  this  ter- 
ritory consist? 

20.  AVhat  are  the  principal  navigable  streams  emptying  into 
the  Gulf  of  Mexico? 

23.  Upon    what    i-iver    is    the    greatest    volume    of    traffic 
handled? 

22.  In  the  absence  of  water   competition  upon  the  rivers, 
could  the  rates  be  materially  advanced? 


CHAPTER  V 
intrastate  rates  in  southern  territory 

1.    Development 

Between  common  points  in  Southern  Territory,  in  the 
case  of  rate  adjustments  to  and  from  points  outside  of 
the  territory,  there  is  an  interlacing  fabric,  resulting 
from  a  definite  relationship  of  one  point  of  origin  to 
another  and  one  point  of  destination  to  another.  The 
rates  from  Chattanooga  bear  fixed  relationship  to  those 
from  Nashville;  the  rates  from  Rome  bear  fix:ed  rela- 
tionship to  those  from  Chattanooga.  Birmingham  and 
Chattanooga  are  hinged  as  points  of  origin.  Rates  from 
Atlanta  are  figured  certain  differentials  below  the 
Chattanooga  and  Birmingham  rates.  Birmingham  is 
hinged  upon  Montgomery;  Columbus  on  Birmingham 
and  Montgomery;  Macon  on  Atlanta,  Columbus,  etc.  It 
is  not  meant  that  to  a  single  destination  one  of  these 
points  of  origin  has  its  rates  hinged  upon  several  other 
points  of  origin;  for  example,  in  one  instance  a  rate 
to  or  from  Atlanta  may  be  made  in  relation  to  the  Chat- 
tanooga rate  and  in  the  next  case  in  relation  to  the 
Birmingham  rate,  and  so  forth. 

In  addition,  there  is  often  a  relationship  between 
different  points  of  destination  and  one  point  of  origin. 

65 


66        FREIGHT  RATES:    SOUTHERN  TERRITORY 

Between  points  in  the  same  state  the  crowning  factor, 
however,  is  the  rate  made  under  the  general  or  specific 
orders  of  the  state  commission.  The  Georgia  Com- 
mission has  been  particularly  active  in  making  whole 
adjustments  between  common  points  as  well  as  between 
non-competitive  points.  In  Alabama  and  Florida  also, 
the  state  commissions  have  specifically  fixed  many  of 
the  rates. 

These  intrastate  adjustments  are  reflected  in  the 
interstate  adjustment.  For  example,  a  rate  made  by 
the  Georgia  Railroad  Commission  from  Savannah  to 
Atlanta  may  act  to  reduce  the  rates  from  the  Virginia 
Cities,  the  Eastern  Cities,  the  Ohio  River  Crossings,  the 
Mississippi  River  Crossings,  etc.  A  rate  made  from 
Columbus,  Ga.,  to  Macon  or  Augusta,  Ga.,  is  often 
reflected  in  the  rates  from  points  lilce  Birmingham  and 
Montgomery,  Ala.,  etc.,  to  the  same  destinations.  The 
change  by  the  commission  in  the  adjustment  from  At- 
lanta to  Brunswick  will  be  immediately  follow^ed  by  a 
corresponding  change  from  Atlanta  to  Charleston,  S.  C, 
and  Jacksonville,  Fla. 

From  and  to  intermediate  points  the  general  basis 
is  the  lowest  combination  mth  continuous  mileage  scales 
as  maximum.  Exceptions  apply  in  the  case  of  rates  on 
manufactured  articles  and  highly  competitive  commodi- 
ties, such  as  lumber,  from  intermediate  points  and  com- 
mon basing  points.  These  rates  are  frequently  made 
the  same  as  those  from  the  next  distant  competitive 
point. 

This  being  true,  it  naturally  follows  that  some  under- 
standing of  the  existing  intrastate  rates  be  had  in  order 
to  follow  intelligently  the  subsequent  interstate  bases  for 
through-rate  construction.  This  chapter  will  therefore 
be  devoted  to  intrastate  rates  in  general.  While  the 
Georgia  and  Florida  adjustments  have  been  quite  fully 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    67 

treated,  it  has  not  seemed  desirable  to  go  to  such  length 
in  the  case  of  each  individual  state  in  the  territory,  as 
the  conditions  are  much  the  same  throughout. 

Every  state  in  this  section  of  the  country  has  a  regula- 
tive body  that  is  vested  with  authority  to  supervise  the 
internal  commerce  of  that  particular  state.  This  func- 
tion is  performed  in  some  cases  by  the  establishment  of 
maximum  rates  prescribed  by  the  commission  and  in 
other  cases  by  a  ratification  of  schedules  submitted  by  the 
carrier  before  becoming  effective,  or  by  subsequent  ap- 
proval of  carrier's  rates  established  at  an  earlier  date. 
The  following  states,  either  by  statutes  or  by  orders  of 
their  respective  commissions,  have  prescribed  substan- 
tially complete  tables  of  distance  rates :  Virginia,  North 
Carolina,  South  Carolina,  Georgia,  and  Florida.  Each 
of  these  states  has  also  promulgated  a  classification  of 
freight  applicable  mthin  the  state.  In  other  states,  how- 
ever, the  authorities  have  virtually  fixed  classifications 
of  their  own  by  accepting  the  railroads'  standard  classi- 
fication (Southern  Classification),  which  is  applied  gen- 
erally, with  some  local  exceptions  prescribed  by  the  sev- 
eral interested  lines. 

It  will  be  observed  that  the  state  commissions  of 
Virginia,  North  Carolina,  South  Carolina,  Florida,  and 
Georgia  have  not  failed  to  recognize  the  propriety  of 
the  fact  that  many  of  the  smaller  and  independent  lines 
require  rates  which  are  on  a  higher  scale  than  that 
accorded  the  larger  systems. 

2.     Georgia 

We  find  that  the  railroads  in  the  state  of  Georgia  are 
assigned  to  four  classes  according  to  their  traffic 
strength:  Class  A,  Class  B,  Class  C,  and  Class  D.  Class 
A  roads  are  accorded  rates  which  are  on  a  lower  scale 


68        FREIGHT  RATES:    SOUTHERN  TERRITORY 

than  Class  B  roads.  Class  B  roads,  while  on  a  higher 
scale  than  Class  A  roads,  are  on  a  lower  basis  than 
Class  C  or  Class  D  roads.  Table  1  indicates  several  of 
the  more  important  lines  in  the  state  and  the  class  to 
which  each  is  assigned. 

TABLE  1 
Classification  of  the  Georgia  Railroads 


Class 

Road 

A 

Alabama  Great  Southern  Railroad 

A 

Atlanta  &  West  Point  Railroad 

A 

Georgia  Railroad 

B 

Atlantic  Coast  Line  Railroad 

C 

Atlanta,  Birmingham  &  Atlantic  Railroad 

C 

Central  of  Georgia  Railway 

C 

Southern  Railway 

D 

Georgia,  Florida  &  Alabama  Railway 

D 

Macon,  Dublin  &  Savannah  Railroad 

D 

Valdosta,  Moultrie  &  Western  Railroad 

The  extent  to  which  the  rates  of  Class  B,  Class  C, 
and  Class  D  roads  may  exceed  the  rates  announced  for 
Class  A  roads  is  indicated  in  the  following  paragraphs : 

CLASS    B 

On  Classes  1,  2,  3,  4,  5,  6,  A,  E,  G,  H,  L,^  N,  and  O,  the 
Standard  Tariff  with  20  per  cent  added. 

On  Classes  B,  K,  M,  and  R,  the  Standard  Tariff  with  10  per 
cent  added. 

On  Classes  C,  D,  F,  J,  and  P,  the  Standard  Tariff  without 
percentage. 

CLASS   c 

On  Classes  1,  2,  3,  4,  5,  6,  A,  E,  G,  H,  L/  N,  and  O,  the 
Standard  Tariff  with  25  per  cent  added. 

On  Classes  B,  K,  M,  and  R,  the  Standard  Tariff  with  10  per 
cent  added. 

On  Classes  C,  D,  F,  J,  and  P,  the  Standard  Tariff  without 
percentage. 

iQn  lime  and  ice,  the  Standard  Tariff  with  10  per  cent  added. 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    69 

CLASS   D 

On  Classes  1,  2,  3,  4,  5,  6,  A,  B,  E,  G,  H,  K,  L,^  M,  N,  and  O, 
and  R:  For  40  miles  and  under,  the  Standard  Tariff  with  50  per 
cent  added;  for  70  miles  and  over  40  miles,  the  Standard  Tariff 
with  40  per  cent  added;  for  100  miles  and  over  70  miles,  the 
Standard  Tariff  with  30  per  cent  added;  over  100  miles,  the 
Standard  Tariff  with  20  per  cent  added. 

On  Classes  C,  D,  F,  J,  and  P,  the  Standard  Tariff  without 
percentage. 

(a)  Joint  Rates 

Rule  27  issued  by  the  Railroad  Commission  of  Georgia 
provides  that  the  maximum  charge  on  a  shipment  mov- 
ing between  two  points  located  in  the  state  of  Georgia 
but  not  located  on  the  same  road  shall  be  90  per  cent 
of  the  sum  of  the  local  rate  allowed  to  be  charged  by  each 
road  handling  the  freight.  To  illustrate,  on  a  shipment 
of  freight  taking  the  first-class  rate,  the  rate  from  Fair- 
burn  on  the  Atlanta  &  West  Point  Railroad  to  Covington 
on  the  Georgia  Railroad  will  be  arrived  at  as  follows: 
Take  the  Atlanta  &  West  Point  Railroad  rate  for  first 
class,  from  Fairburn  to  Atlanta  (a  distance  of  18.81 
miles),  which  is  20  cents;  from  this  deduct  10  per  cent, 
or  2  cents,  leaving  18  cents  as  the  proportion  of  the 
Atlanta  &  West  Point  Railroad  for  transporting  the 
joint  shipment  from  Fairburn  to  Atlanta.  To  this  add 
the  Georgia  Railroad  rate  from  Atlanta  to  Covington 
(41  miles),  which  is  27  cents;  deduct  10  per  cent,  or  3 
cents,  leaving  24  cents,  which  represents  the  Georgia 
Railroad  proportion  for  hauling  the  joint  through  ship- 
ment from  Fairburn  to  Covington;  the  total  through 
charge  (joint  rate)  is  42  cents. 

Each  railroad  company's  proportion  in  handling  joint 
through  shipments  must  be  determined  before  adding  to- 
gether the  rates  to  arrive  at  a  joint  through  rate ;  unless 
otherwise  provided  by  a  proper  division  basis  among  the 


70        FREIGHT  RATES:    SOUTHERN  TERRITORY 


TABLE  2 
Georgia  Distance  Rates 


Per 
Bbl. 

Per 

Per 

PER  100 

POUNDS 

100 

100 

Lbs. 

Lbs. 

Dis- 
tance 

1 

2 

3 

4 

5 

6 

A 

B 

c 

D 

E 

Cts. 

F 

G 

H 

Miles 

Cts. 

cts.- 

cts. 

Cts. 

Cts. 

Cts. 

Cts. 

Cts. 

Cts 

Cts. 

Cts. 

Cts. 

Cts. 

6 

13 

11 

10 

8 

7 

6 

6 

6 

41 

S\ 

7 

9 

2i 

8 

10 

IB 

14 

13 

10 

9 

8 

8 

8 

5i 

5 

9 

lU 

H 

10 

16 

18 

16 

15 

13 

11 

9 

<i 

9 

6' 

5', 

11 

12i 

8J 

13 

80 

20 

18 

16 

14 

12 

10 

10 

10 

7 

6" 

12 

14" 

6 

14 

25 

2a 

20 

18 

16 

13 

11 

11 

11 

7^- 

6  J 

13 

!■) 

51 

16 

SO 

21 

21 

19 

17 

14 

11 

u 

11 

7j 

61 

14 

15 

6 

17 

85 

26 

23 

21 

19 

15 

12 

12 

12 

8 

7i 

15 

l^ 

6i 

6| 

19 

40 

27 

24 

23 

20 

16 

12 

12 

13 

8 

ll 

16 

16^ 

20 

45 

29 

26 

24 

2f 

17 

13 

13 

18 

8^ 

8 

17 

IH 

6f 

21 

50 

30 

27 

25 

22 

18 

13 

13 

13 

8i 

8 

18 

\n 

7 

22 

55 

82 

29 

26 

28 

19 

14 

14 

14 

9 

s\ 

la 

18 

7 

23 

60 

83 

30 

27 

24 

19 

14 

14 

14 

9 

bi 

19 

18 

7r 

24 

65 

35 

32 

28 

25 

20 

15 

15 

15 

n 

9 

20 

19 

7,. 

28 

70 

36 

33 

29 

26 

20 

15 

15 

15 

^ 

9 

20 

19 

t 

26 

75 

38 

35 

80 

27 

SI 

16 

16 

16 

10 

9i 

21 

20 

r 

27 

80 

89 

86 

31 

28 

21 

16 

16 

16 

10 

n 

21 

20 

7. 

28 

86 

41 

37 

33 

29 

23 

17 

17 

17 

11 

10' 

23 

2H 

7i 

29 

90 

42 

38 

33 

29 

23 

ir 

17 

17 

11 

10 

22 

2U 

8 

29 

G5 

44 

39 

34 

80 

23 

18 

18 

18 

in 

11 

23 

28" 

8 

30 

100 

45 

40 

35 

30 

23 

18 

18 

18 

111 

11 

23 

23 

Bi 

30 

110 

48 

42 

37 

31 

24 

19 

19 

19 

13 

11 

24 

23 

Sh 

81 

120 

51 

44 

89 

33 

25 

20 

20 

20 

j3 

12 

25 

24 

^ 

33 

130 

54 

46 

41 

83 

26 

21 

21 

21 

13 

12 

26 

25 

8| 

83 

140 

57 

48 

43 

34 

27 

22 

23 

22 

13 

13 

27 

26 

9 

34 

150 

60 

50 

45 

35 

28 

23 

23 

23 

14 

13 

28 

28 

9 

35 

1(!0 

62 

52 

46 

86 

29 

24 

24 

24 

14 

13 

29 

29 

H 

86 

170 

64 

64 

47 

87 

80 

25 

25 

25 

15 

14 

30 

31 

»i 

37 

180 

66 

56 

48 

38 

81 

20 

26 

26 

15 

14 

ol 

31 

n 

38 

190 

68 

58 

49 

39 

S3 

27 

27 

27 

16 

16 

32 

33 

4 

89 

200 

70 

60 

50 

40 

32 

27 

27 

27 

16 

15-i 

32 

33 

91 

40 

210 

71 

62 

51 

41 

8b 

28 

28 

28 

17 

18 

83 

84 

9| 

41 

E20 

72 

64 

62 

42 

33 

28 

28 

28 

17 

16 

33 

84 

10 

42 

230 

73 

66 

63 

43 

84 

29 

29 

29 

18 

17 

34 

36 

m 

43 

240 

74 

68 

64 

44 

84 

29 

29 

29 

18 

17 

34 

36 

lOj 

44 

250 

75 

70 

55 

45 

35 

30 

30 

30 

19 

18 

35 

38 

10^ 

45 

260 

76 

71 

66 

46 

85 

80 

30 

80 

19 

18 

35 

88 

10^ 

46 

270 

77 

71 

56 

46 

36 

31 

81 

81 

20 

19 

36 

40 

10^ 

46 

280 

78 

72 

57 

47 

33 

Si 

32 

32 

20 

19 

36 

40 

m 

47 

290 

79 

72 

67 

47 

37 

82 

32 

32 

21 

19 

37 

42 

io| 

47 

300 

80 

73 

58 

48 

38 

33 

33 

33 

21 

19 

3Q 

42 

11 

48 

810 

81 

73 

68 

48 

88 

83 

33 

33 

21 

19 

38 

42 

11 

48 

820 

82 

74 

69 

49 

39 

34 

34 

34 

21 

20 

39 

42 

11 

49 

880 

83 

74 

59 

49 

39 

34 

34 

84 

22 

20 

89 

44 

11 

49 

840 

84 

74 

59 

49 

39 

34 

84 

84 

23 

20 

£9 

44 

11 

49 

350 

85 

75 

60 

50 

40 

35 

35 

35  23  1 

21 

40 

46 

11 

50 

860 

85 

75 

60 

50 

40 

85 

35 

3.!. 

23 

21 

40 

46 

HI 

60 

870 

85 

75 

60 

50 

40 

35 

35 

35 

23 

21 

40 

46 

iH 

50 

880 

88 

7r 

61 

61 

41 

36 

36 

86 

25 

23 

41 

50 

111 

63 

890 

88 

76 

61 

51 

41 

36 

36 

86 

25 

23 

41 

60 

Uj 

62 

400 

88 

76 

61 

51 

41 

36 

36 

36 

25 

23 

41 

50 

111 

52 

410 

v»i 

77 

62 

52 

42 

37 

37 

37 

26 

24 

42 

52 

lU 

64 

420 

91 

77 

62 

62 

42 

37 

37 

37 

26 

24 

42 

53 

Jlj 

54 

430 

91 

77 

62 

62 

42 

37 

87 

37 

26 

24 

43 

62 

Hi 

64 

440 

94 

78 

63 

53 

48 

38 

88 

38 

27 

25 

43 

64 

iij 

56 

450 

94 

78 

63 

53 

43 

38 

38 

38 

27 

25 

43 

54 

in 

56 

460 

94 

78 

63 

63 

43 

38 

G8 

38 

27 

25 

43 

64 

13 

66 

INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    71 

TABLE  2— Continued 
Georgia  Distance  Rates 


Per  100  Pounds. 

Per  Ton. 

Per  Car  Load. 

Per 
100  Lbs. 

Dis- 
tance 

J 

K 

L 

M 

N 

0 

P 

R 

Miles 

Cts. 

Cts. 

$  Cts. 

.$  Cts. 

$    Cts. 

$    cts. 

$    Cts. 

Cts. 

5 

8 

4 

35 

65 

5  00 

5  60 

4  00 

4 

10 

10 

5 

50 

80 

6  50 

8  00 

5  00 

5 

15 

12 

^ 

65 

85 

7  50 

9  00 

6  00 

51 

20 

13 

6 

60 

90 

8  00 

10  00 

7  00 

6 

25 

14 

61 

65 

95 

9  00 

11  00 

8  00 

6^ 

30 

15 

7 

70 

1  00 

10  00 

11  00 

8  CO 

7" 

35 

16 

n 

75 

1  C5 

12  00 

12  CO 

9  00 

7| 

40 

17 

8' 

80 

1   10 

13  00 

li  00 

9  00 

8* 

45 

18 

8 

85 

1  15 

14  00 

13  00 

10  00 

8i 

60 

19 

8 

90 

I2d 

14  00 

13  00 

10  00 

9 

55 

20 

8 

95 

I  25 

14  00 

14  OO 

10  00 

9 

60 

21 

9 

95 

1  30 

14  50 

14  CO 

11  00 

10 

65 

22 

9 

1  00 

1  35 

15  50 

15  00 

11  00 

10 

70 

22 

9 

1  CO 

1  40 

16  00 

15  00 

11  00 

11 

75 

23 

n 

1  05 

I  45 

16  60 

16  00 

12  00 

H 

80 

23 

n 

1  10 

1  to 

17  00 

IG  00 

12  00 

13 

85 

24 

9j 

1  15 

1  65 

3  7  60 

17  00 

13  00 

12 

90 

24 

9t 

1  15 

1  60 

18  00 

17  00 

13  00 

13 

95 

25 

10- 

1  20 

1  05 

19  00 

'  17  CO 

14  00 

14 

100 

25 

10 

1  20 

1  70 

20  00 

17  00 

14  00 

14 

110 

k6 

10 

1  25 

1  80 

21  00 

18  (0 

11  0) 

15 

120 

27 

101 

1  30 

1  90 

23  00 

18  00 

15  00 

16 

130 

28 

m 

i  35 

2  00 

24  00 

i;»  00 

16  00 

17 

140 

29 

11 

1  40 

2  10 

25  00 

19  00 

10  00 

18 

150 

30 

11 

1  50 

2  20 

26  00 

20  00 

17  00 

18 

160 

31 

12 

1  60 

2  25 

21  00 

20  00 

17  00 

19 

170 

32 

12 

1  70 

2  30 

28  00 

21  00 

18  00 

19 

180 

33 

.    12 

1  iO 

2  35 

29  00 

21  CO 

19  00 

20 

190 

3t 

13 

1  90 

2  40 

2i)  50 

22  00 

10  00 

20 

200 

35 

13 

2  00 

2  45 

30  00 

22  00 

20  00 

20 

210 

36 

13 

2  10 

2  50 

31  00  - 

23  00 

20  00 

21 

220 

37 

14 

2  20 

2  55 

31  50 

23  00 

21  00 

21 

230 

38 

14 

2  30 

2  65 

82  00 

23  00 

21  CO 

21 

240 

39 

14 

3  40 

2  65 

33  00 

24  00 

22  00 

22 

250 

40 

15 

2  50 

2  75 

33  50 

24  00 

22  00 

22 

260 

41 

16 

2  60 

2  76 

34  00 

24  00 

'22  00 

22 

270 

42 

15 

2  70 

2  85 

34  60 

25  00 

23  00 

22 

280 

43 

16 

2  80 

2  85 

35  00 

25  00 

23  CO' 

23 

290 

44 

16 

2  90 

2  95 

36  00 

25  00 

24  00 

23 

300 

45. 

16 

2  95 

3  00 

36  50 

26  CO 

24  00 

23 

310 

46  '■ 

IT 

3  05 

3  10 

37  00 

26  00 

24  00 

23 

320 

47 

IV 

3  05 

3  20 

38  00 

26  00 

24  00 

24 

330 

48 

17 

3  15 

3  30 

38  50 

27  00 

25  00 

24 

840 

49 

17 

3  15 

3  40 

39  00 

27  00 

25  00 

24 

350 

50 

17 

3  28 

3  50 

40  00 

27  00 

25  00 

24 

360 

61 

17 

3  28 

8  50 

40  00 

27  00 

25  00 

24 

370 

52 

17 

8  28 

3  50 

40  00 

27  00 

25  00 

24 

880 

53 

18 

3  41 

3  €0 

41  00 

29  00 

27  00 

26 

390 

54 

18 

3  41 

3  60 

42  00 

29  00 

27  00 

26 

400 

55 

18 

3  41 

3  60 

42  00 

29  00 

27  00 

26 

410 

56 

19 

3  54 

3  70 

44  00 

31  00 

29  00 

28 

420 

67 

19 

3  54 

3  70 

44  00 

31  00 

29  00 

28 

430 

58 

19 

3  64 

3  70 

44  CO 

31  00 

29  00 

28 

440 

59 

20 

3  67 

3  80 

4G  00 

33  00 

31  00 

30 

450 

59 

20 

3  67 

3  80 

46  00 

33  00 

31  00 

30 

460 

60 

20 

3  67 

3  80 

46  00 

33  00 

31  00 

30 

72 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


carriers,  which  does  not  affect  the  total  through  joint 
rate  paid  by  the  shipper  or  consignee,  the  through  joint 
rate  will  divide  between  the  carriers  as  made. 

The  distance  rates  set  forth  in  the  forty-first  annual 
report  of  the  Georgia  Railroad  Commission  have  been 
reproduced  in  Table  2. 

It  will  be  observed  from  Table  2  that  additional  classes 
other  than  those  shown  in  the  Southern  Classification 
proper  are  established.  This  fact  is  accounted  for  by  a 
special  classification  issued  by  the  commission,  which 
provides  ratings  for  articles  conforming  to  the  scale  it 
has  adopted. 

As  indicated  by  Table  3,  different  ratings  are  provided 
for  some  articles  according  to  whether  they  are  shipped 
subject  to  the  owner's  risk  or  to  the  carrier's  risk. 

TABLE  3 


Specimen  Classification  Ratings  of  the  Georgia  Railroad 
Commission    Compared    with    Southern 
Classification  Ratings 


Georgia 

SOTTTHERN 

Commodity 

Carrier's      Owner's 
Risk            Risk 

Owner's 
Riski 

Class           Class 

Class 

Baled  cotton,  any  quantity 

J 

G 

R                T 

L 

J  of  6th 
L 

1                  M 
6                  I 
6                  D 
K 

1 

Cotton  seed,  for  planting 

D 

Drain  tile,  C.  L 

A 

Ice,  C.  L 

6 

Iron  and  steel  articles  as  per  special  list, 
C.  L 

6 

Jug  ware,  C.  L 

6 

Live  poultry,  C.  L 

Special 

Potatoes,  L.  C.  L 

Potatoes,  C.  L 

6 
6 

Shell  oysters,  C.  L 

6 

^Carrier's  risks  are  10  per  cent  higher. 


"      INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    73 

All  cotton  is  handled  on  commodity  rates  materially 
lower  than  the  corresponding  class  rates. 

ijo)  Distances 

The  Railroad  Commission  of  Georgia  also  publishes 
official  mileages  between  all  points  within  the  state,  which 
must  be  used  in  conjunction  with  the  rates  and  classifi- 
cation heretofore  treated.  The  following  excerpt  from 
its  issue  will  give  the  reader  an  idea  of  the  manner  in 
which  this  information  is  set  forth.  These  figures  are 
supplied  the  commission  by  the  carriers. 

DISTANCE  TABLES 

*Indicates  Non-Agency  Stations 
Atlanta,  Birmingham  &  Atlantic  Railroad 

BRUNSWICK  to  BIRMINGHAM 


Brunswick 0.0 

*  Southern      Junc- 

tion       9.0 

♦Brobston 12.3 

*Anguma 15.9 

*Leicht 17.1 

*Blount8 19.4 

Thallman 21 . 1 

♦Lett 24.0 

*Browntown 27.0 

*Fendig 31.2 

*  Needmore 34 . 7 

Hortense 38 . 0 

Zirkle 43.5 

Offerman 48.7 

Bristol 55.5 

Coffee 62.8 

*MiUCity 68.0 

Rockingham ....   70 . 2 

Alma 73.4 

Guysie 77.2 

*Se8som8 80.9 

Nicolls 84.2 

Chatterton 90.0 

Douglas 97.3 

*Upton 100.1 


Bushnell 104.9 

Ambrose 108.9 

Wray 112.0 

Osierfield 116  9 

*Ashton 120.8 

Fitzgerald 126.0 

*Abba 133.4 

*Arp 135.4 

Rebecca 141 .6 

Double  Run.  .147.1 

♦Hatley 151.6 

*Musselwhite 158.0 

Cordele 162 . 9 

♦Ross 167.0 

Vienna 172  5 

Lilly 178.6 

Byromville 183.4 

Dooling 185.9 

♦Fields 190.9 

Montezuma  .  .  .  194 . 1 
Oglethorpe.  ..  .195.7 

*3artlett 200.9 

Ideal 205.7 

Southland 208.8 

♦Rupert 213.1 

Charing 218.1 


Mauk 222.4 

♦Norwich 225.4 

Junction  City .  ..230.4 
♦Paschal 231.0 

Talbotton 238.2 

♦Berry 243.1 

Woodland 248.3 

Chalybeate 

Springs 254.3 

Manchester..  .  .256.0 

Bullochville 261.4 

♦Warm  Springs. .  .262.0 

Durand 267.6 

Stovall 273.2 

♦Big  Springs 277.7 

♦Knott 280.2 

LaGrange 286.8 

♦Pyne 293.1 

♦Abbottsford 297.0 

Georgia-Alabama 
Line 299.8 

Standing  Rock, 
Ala 301  8 

Roanoke,  Ala .  .  311 . 1 

Birmingham, 

Ala 453.8 


74        FREIGHT  RATES:    SOUTHERN  TERRITORY 


Central  of  Georgia  Railway 
savannah  to  atlanta 


Savannah 

*  Central  Junc- 
tion   

Pooler 

Bloomingdale .  .  . 

Meldrim 

Eden 

Marlow 

Pineora 

Guyton 

Tusculum 

Egypt 

Oliver 

Halcyondale.  .  .  . 

Cameron 

Dover 

Ogeechee 

Rocky  Ford .  .  .  . 

Scarboro 

*ParamoreHill.  .  . 

Millen 


0.0    *Cushingville 83.0 

Rogers 86.8 

3.4       Herndon 90.1 

8.2      Midville 96  3 

12.3     *Gertrude 100.4 

17.0  Wadley 106.9 

19.3      Bartow 111.3 

26.1  *Almira 116.0 

27.5  Davisboro 122.2 

30.3  Sun  Hill 130.1 

35.1  Tennille 135  2 

40 . 4  Oconee 146 . 4 

45.9      Toomsboro 154.9 

50.0      Mclntyre 161.7 

54.6  Gordon 170  6 

57.4  *Lewi8ton 174.9 

61.5  Griswold 181.5 

66.4       Macon 190.8 

70.7  *  Macon  Junction.  191. 7 

74.2  ♦RivoU 198.6 

78.8  *Lorane 203.1 


Bolingbroke 206.0 

Smarrs 212.2 

Forsyth 217.2 

♦Colliers 223.0 

Goggins 228.6 

Barnesville 233.3 

Milner 239.8 

Orchard  Hill....  245. 2 

Griffin 251  3 

Pomona 256 . 5 

Sunnyside 258 . 3 

Hampton 261 . 7 

Lovejoy 266 . 6 

*Orrs 270.8 

Jonesboro 273 . 1 

Morrow 277 . 6 

Forrest  Park.  ..  .281.3 

Hapevillo 285.5 

East  Point 288.1 

Ft.  McPherson.  .290.6 
Atlanta 294.5 


Southern  Railway  Company 
atlanta  to  brunswick 


Atlanta 

..      0  0 

Roseland 

..     2.8 

Constitution.  . 

..     5.9 

*  Henrico 

..     7.7 

Conley 

..     9.4 

Ellenwood .... 

.  .   12.6 

Rex   

.  .    14.4 

Stockbridge. .  . 

. .   18.5 

*Mahers  Quarry 

. .   20.0 

*Tunis 

.  .  22.3 

Fhppen 

. .  24.0 

McDonough .  . 

.   28.0 

Locust  Grove .  . 

.   35.2 

Jenkinsburg. .  . 

. .  40.1 

Jackson 

. .  45.5 

♦Central  Ga. 

Power  Co. .  . 

. .  47.2 

Flovilla 

. .  50.5 

Cork 

. .  53.8 

Berner 

. .  59.5 

Juhette 

. .  64.0 

♦PolhiU 

. .  67.3 

♦Macon    Stone 

& 

Supply  Co.  . 

. .   68.2 

Dames  Ferrv. . 

..   71.6 

Popes  Ferry. .  . 

.  .   74.0 

Holton 

. .   78.9 

♦Virgin 

. .   82.2 

Macon 87 . 2 

♦Reid 96.8 

♦Philhp 98.3 

BuUard 103.5 

Adams  Park ....  107 . 5 

♦Ettrick 109.5 

West  Lake 113.6 

♦AinsUe 116.1 

♦Newberry 118.3 

♦McGriff 120.2 

Coley 122.2 

Cochran 126.2 

Empire 131.9 

♦Dubois 134.9 

Gresston 136 . 5 

Eastman 144 . 8 

♦Godwinsville 149.9 

Chauncey 154 . 6 

♦Soumi 155.9 

♦Achord 160.2 

Helena 163.4 

McRae 164.8 

Scotland 169.8 

Towns 174.8 

♦Wilcox 179.5 

♦Lowery 180.3 

Lumber  City..  .  .181.6 

♦Ocmulgee 182.9 

Hazlehurst ....  188 . 9 


♦  Johnson ville .  .  .  .194.0 

Graham 195.2 

Pine  Grove 198.5 

♦Prentiss 201.6 

Baxley 204.8 

♦Wheaton 208.7 

Surrency 214 . 3 

Brentwood 219.2 

Odum 225.2 

♦Burnett 226.3 

♦Nesbit 230.1 

♦Drawdy 232.2 

Jesup 234.8 

♦Whaleys 237.5 

♦Odessa 239.7 

Gardi 241.4 

♦Bennetts  Still.  .  .242.4 

♦Pendarvis 244.6 

♦Grangerville 247.0 

Mount      Pleas- 
ant  251.6 

Everett 255 . 3 

♦Belle  Vista 257.8 

♦Zuta 261.3 

♦Walbirg 263.1 

SterUng 265.4 

♦Gignlatt 268.6 

Brunswick 274 . 5 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    75 
(c)  Joint  Lines  Defined 

The  rules  of  this  commission  likewise  provide  that 
where  two  or  more  connecting  lines  of  railroad  are  oper- 
ated by  or  are  under  one  management  or  company,  or 
where  the  majority  of  stock  of  any  railroad  company  is 
owned  or  controlled  either  directly  or  indirectly  by  con- 
necting railroad  companies,  the  lines  of  such  companies 
shall  be  considered  as  constituting  but  one  and  the  same 
railroad,  and  the  rates  for  the  carriage  of  freight  over 
such  railroads,  or  any  portion  thereof,  shall  be  com- 
puted upon  the  continuous  mileage  basis. 

{d)    Application  of  Distances 

In  the  application  of  distances  less  than  100  miles, 
the  actual  distance  that  a  shipment  may  be  carried  is 
not  shown  by  the  standard  freight  tariff.  The  same 
charges  may  be  collected  as  those  specified  for  the  dis- 
tance shown  by  said  standard  tariff  most  nearly  approxi- 
mating the  actual  distance.  For  example,  if  the  actual 
distance  be  48  miles,  the  50-mile  rate  applies;  for  47 
miles,  the  45-mile  rate  applies;  for  distances  over  100 
miles,  where  the  actual  distance  is  not  shown  by  the 
standard  tariff,  the  next  greater  distance  governs.  For 
example,  if  the  actual  distance  be  101  miles,  the  rate 
for  110  miles  applies,  provided,  however,  that  in  all  cases 
where  fractional  miles  are  shown  the  unit  mile  is  to  be 
arrived  at  in  the  following  manner:  For  distances  of 
one-half  mile  and  over,  the  next  unit  mile  above;  for 
distances  less  than  one-half  mile,  the  unit  mile  below. 

(e)    Lines  not  in  Excess  of  Ten  Miles 

Another  important  feature  in  the  application  of  these 
distances  is  that  the  railroad  company  whose  line  does 


76        FREIGHT  RATES:    SOUTHERN  TERRITORY 

not  exceed  10  miles  in  length  may  assess  and  collect 
freight  charges  on  any  shipment  transported  by  it  be- 
tween any  points  on  its  line  as  if  the  shipment  were  car- 
ried 10  miles.  It  should  be  understood  that  throughout 
the  South  many  logging  and  tap  lines  have  been  built 
whose  mileage  does  not  exceed  this  figure,  and  the  intent 
of  this  rule  is  to  accord  them  a  basis  of  rates  somewhat 
higher  than  would  ordinarily  obtain. 


CHAPTER  VI 


INTRASTATE  RATES  IN  SOUTHERN    TERRITORY— Continued 

1.     Tennessee 

The  Railroad  Commission  of  this  state,  on  February 
20,  1914,  issued  an  order  establishing  the  rates  then 
published  by  the  carriers  as  maximum  rates  until  other- 
wise ordered.  A  specimen  table  of  these  rates  applying 
from  Memphis,  Tenn.,  to  Decherd,  Tenn.,  also  to  Chat- 
tanooga, is  shown  in  Table  4. 

TABLE  4 

Class  Rates  from  Memphis,  Tenn.,  to  Local  Stations  on 
THE  Nashville,  Chattanooga  &  St.  Louis  Rail- 
way in  Tennessee 


>-• 

Rates 

IN  Cents  per  100  Pounds    Except  ae 

No 

TED 

Fbom  Memphis,  Tenn., 
To 

1 

2 

3 

4 

5 

Classes 
6      A 

1 
B 

C 

D 

e 

H 

F2 

Montgomery  Park 

Berclaire 

4.3 
9.1 
12.2 
16.6 
24.8 
49.4 
72.2 
99 

122.3 
143.5 
196.2 
290.8 
319.6 
313 

12 
18 
23 
25 
28 
37 
45 
49 
62 
54 
64 
50 
83 
70 

10 
15 
20 
22 
24 
32 
40 
43 
46 
47 
64 
40 
75 
60 

9 
13 

17 
18 
19 
27 
34 
37 
40 
42 
46 
35 
61 
53 

8 
12 
15 
16 
17 
23 
28 
30 
33 
35 
38 
27 
50 
43 

7 
10 
13 
14 
15 
20 
23 
26 
29 
30 
30 
23 
43 
37 

6 
8 
11 
12 
13 
18 
21 
23 
26 
27 
29 
19 
37 
26 

6 

7 
9 
10 
11 
16 
19 
21 
24 
25 
28 
18 
34 
16 

6 

7 
9 
10 
11 
16 
19 
21 
24 
25 
28 
23 
42 
25 

6 
7 
9 
10 
11 
13 
15 
15 
16 
16 
18 
11 
24 
21 

6 
7 
9 
10 
11 
13 
16 
15 
16 
16 
18 
11 
24 
17 

7 
10 
13 
14 
15 
20 
23 
26 
29 
30 
30 
23 
43 
30 

8 
12 
15 
16 
17 
23 
28 
30 
33 
36 
38 
23 
60 
35 

12 
H 

Mullins 

18 

Cordova 

?0 

Eads 

?? 

Laconia 

98 

Denmark 

SO 

Lurry 

30 

Wildersville 

S? 

Hollow  Rock  Jet 

Dickson 

32 

T6 

Nashville 

?0 

Decherd 

48 

Chattanooga 

34 

'Governed  by  the  Southern  Classification. 
'Per  barrel. 


It  will  be  observed  from  Table  4  that  to  Nashville  and 
Chattanooga  rates  are  published  which  are  considerably 
less  than  those  applying  to  intermediate  points.    In  the 

77 


78        FREIGHT  RATES:    SOUTHERN  TERRITORY 

case  of  the  former,  this  is  due  to  the  competition  on  the 
Cumberland  River. 

The  rates  to  Chattanooga  are  compelled  by  market 
competition  and  are  practically  the  same  as  those  apply- 
ing to  Chattanooga  from  Cincinnati,  Ohio,  which  were 
prescribed  by  the  Interstate  Commerce  Commission  as 
maximum  rates  in  1910.^  If  the  merchants  of  Mem- 
phis are  to  be  afforded  an  opportunity  to  com- 
pete with  the  Cincinnati  merchants,  the  distance  be- 
tween the  respective  points  being  practically  the  same, 
it  naturally  follows  that  they  must  do  so  on  practically 
the  same  scale  of  rates.  The  distance  from  Cincinnati 
to  Chattanooga  via  the  Cincinnati,  New  Orleans  &  Texas 
Pacific  Railway  is  338  miles,  while  the  distance  from 
Memphis,  Tenn.,  to  Chattanooga  via  the  Southern  Rail- 
way is  313  miles. 

It  must  also  be  remembered  that  through  water  routes 
from  Memphis,  Tenn.,  to  Tennessee  River  landings  are 
available  for  practically  ten  months  of  the  year  and  con- 
sequently limti  to  a  great  extent  the  measure  of  rates 
that  may  be  exacted  to  such  points. 

Another  line  of  representative  rates  between  Tennes- 
see points  is  shown  in  Table  5. 

2.    Flokida 

As  is  the  case  in  so  far  as  Georgia  is  concerned,  the 
Railroad  Commission  of  Florida  prescribes  maximum 
rates,  a  freight  classification,  and  mileages  to  be  applied 
upon  traffic  moving  within  the  state.  These  state  rates 
are  usually  applied  in  constructing  rates  on  interstate 
traffic  in  the  following  manner. 

Reference  to  the  Atlas  of  Traffic  Maps  will  indicate 
that  the  larger  portion  of  this  state  lies  south  of  Jack- 
US  I.  C.  C.  Rep.,  440. 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY  79 


TABLE  5 

Class  Rates  Between  Memphis,  Tenn.,  and  Stations  on  the 
Illinois  Central  Railroad  in  Tennessee 


Miles 

Rates  in  Cents  per  100  Pounds  Except  as  Noted 

From  Memphis,  Tenn., 
To 

Classes' 
123456ABCDEHF» 

Frayser 

9 
13 
23 

26 
30 
59 
96 
117 

12     10       9876665566     10 

Lucy 

15     13     12     11     10       9       9       9       6       6       9       9     12 

Tipton 

Atoka 

20     17     15     13     12     11     11     11       7       7     11     11     14 
23     20     17     15     14     14     13     13       9       8     13     13     16 

Brighton 

30     25     21      18     17     16     15     16     12     11      16     17     22 

Curve 

43     37     33     30     27     23     18     20     19     18     22     25     36 

Obion 

53     43     35     32     29     25     20     22     21     20     24     30     40 

Pierce 

55     45     35     32     29     25     20     22     21     20     24     30     40 

'Governed  by  the  Southern  Classification. 
*Per  barrel. 


sonville,  Fla.,  which  is  the  principal  base  point  in  the 
state.  As  Jacksonville  is  also  one  of  the  principal  Soutli 
Atlantic  Ports,  it  naturally  enjoys  very  low  rates  from 
the  eastern  seaboard  in  connection  with  the  water  lines 
serving  it.  The  rates  established  by  the  water  lines  prac- 
tically fix  the  rates  which  may  be  charged  from  interior 
northern  cities.  Also,  as  has  been  stated,  the  market 
competition  between  the  eastern  and  western  territories 
results  in  comparatively  low  rates  from  the  West  be- 
cause of  the  low  charges  the  East  is  able  to  exact.  Con- 
sequently, as  a  rule,  rates  are  made  to  inland  points  in 
Florida  by  adding  to  the  rates  to  Jacksonville  the  local 
rates  prescribed  by  the  Eailroad  Commission  of  Florida 
for  the  class  of  railroads  over  which  the  inland  haul  is 
made. 

Representative  rates  are  indicated  in  Table  6. 

As  in  the  other  cases,  violations  of  the  long-and-short- 
haul  clause  under  this  adjustment  exist  subject  to  ap- 
proval by  the  state  and  interstate  commissions ;  in  fact, 
rates  are  published  from  northern  points  of  origin  to 
Key  West  which  are  considerably  lower  than  the  rates  to 
Jacksonville.    These,  however,  are  applicable  only  upon 


80 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


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INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    81 


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2  20  2  26 
2  21  2  27 

2  22  2  28 
2  23  2  29 
2  24  2  30 
2  25  2  31 

2  26  2  32 
2  27  2  33 
2  28  2  34 
2  29  2  35 

2  30  2  36 
2  31  2  37 
2  32  2  38 
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2  34  2  40 
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210  Miles  and  over  200  Miles.  . 
220   "    "   "   210  Miles.. 

230   220  Miles.. 

240   "    "   "   230  Miles.. 

250   "    "   "   240  Miles.. 

260   250  Miles.. 

270   260  Miles.. 

280   270  Miles.. 

290   280  Miles.. 

300   "    "   "   290  Miles.  . 

310   300  Miles.. 

320   310  Miles.. 

330   320  Miles.. 

340   330  Miles.. 

350   340  Miles.. 

360   350  Miles.. 

370   360  Miles.. 

380   370  Miles.. 

390   380  Miles.. 

400   390  Miles.. 

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FREIGHT  RATES:    SOUTHERN  TERRITORY 


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INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    83 

traffic  destined  to  Cuba  and  are  not  available  for  domes- 
tic use. 


TABLE  7 

Distances  Prescribed  by  Florida  Railroad  Commission  for 

Application  on  Local  Traffic  Between  Points 

ON  THE  East  Coast  of  Florida 


Distance  From 

Jacksonville,  Fla., 

To 


Bowden 

Sunbeam 

St.  Augustine.  .  .  . 

Hastings 

Roy 

DuPont 

Ormond 

Port  Orange 

OakHiU 

Pritchards 

Melburne 

Sebastian 

Fort  Pierce 

Eden 

West  Palm  Beach . 
Fort  Lauderdale .  . 

Perrine 

Jewfish 

Long  Key 

Cudjoe 


Miles 


5 
9 

47 
54 
69 
90 
104 
115 
136 
158 
194 
215 
242 
254 
299 
341 
382 
415 
458 
500 


Distance  From 

Jacksonville,  Fla., 

To 


Bayard 

Woodland 

Armstrong.  .  .  . 
East  Palatka .  . 

Neoga 

Highwood 

Daytonia 

New  Smyrna .  . 
East  Mims .... 

Cocoa 

Malabar 

Gifford 

Ancona 

Stuart 

Delray 

Miami 

Homestead. .  .  . 
Central  Supply . 

Marathon 

Key  West 


Miles 


15 

24 

49 

62 

80 

98 

110 

125 

150 

173 

200 

225 

249 

262 

317 

366 

394 

444 

475 

522 


The  close  proximity  of  Key  West  to  Cuba  is  attract- 
ing a  considerable  volume  of  traffic  to  that  port,  but  as 
this  adjustment  is  specifically  dealt  with  in  the  treatise 
devoted  to  export  rates,^  we  deem  it  unnecessary  to  go 
into  it  at  this  time. 

The  contour  of  Florida  is  such  that  water  competi- 
tion is  a  controlling  factor  in  the  adjustment  of  rates 
from  and  to  many  points,  Jacksonville  forming  the  prin- 
cipal port  of  entry  on  the  east  coast,  although  irregular 
sailings  are  made  to  Fernandina.     Tampa,  Carrabelle, 

^Part  4  of  "Freight  Rates — Western  Territory." 


84        FREIGHT  RATES:    SOUTHERN  TERRITORY 

Pensacola,  and  Apalachicola  on  the  west  coast  afford 
safe  harbors  for  steamers  and  sailing  craft  operating 
between  these  ports  and  Mobile,  Ala.,  New  Orleans,  La., 
and  Galveston,  Tex. 

(a)  Joint  Rates 

The  rule  of  the  Florida  Railroad  Commission  with 
reference  to  the  construction  of  joint  rates  is  that  in  the 
case  of  shipments  which  pass  over  the  whole  or  por- 
tions of  two  or  more  roads  not  under  the  same  control, 
the  maximum  rate  charged  shall  not  be  greater  than  the 
sum  of  the  local  rates  on  such  freights,  less  10  per  cent 
for  the  distance  hauled  over  each  road;  in  the  case  of 
shipments  passing  over  three  or  more  roads,  the  maxi- 
mum rate  shall  not  be  greater  than  the  sum  of  the  local 
rates  on  such  freights,  less  20  per  cent  for  the  distance 
hauled  over  each  road.  The  total  rate  thus  ascertained 
on  such  freights,  from  the  point  of  shipment  to  the  point 
of  destination,  shall  be  divided  in  such  proportion  be- 
tween the  railroads  over  which  such  freights  pass  as  to 
give  to  each  railroad  interested  in  the  shipment  its  local 
rate,  less  10  per  cent  in  the  case  of  shipments  over  two 
roads,  and  less  20  per  cent  in  the  case  of  shipments  over 
three  or  more  roads,  for  the  distance  such  shipment  is 
hauled,  conditioned  upon  the  initial  line  delivering  the 
traffic  to  the  delivering  line  at  its  nearest  junctional 
point. 

3.    North  Carolina 

The  scale  of  rates  prescribed  by  the  general  assembly 
of  the  state  of  North  Carolina  was  alleged  by  the  car- 
riers to  be  unremuneratjve  and  therefore  unreasonable. 
For  this  reason,  the  governor  of  the  state  appointed  a 
special  commission  to  investigate  the  claims  of  the  car- 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    85 

riers  and  as  a  result  the  rates  indicated  in  Table  8  were 
adopted  for  the  use  of  the  carriers  operating  within  this 
state. 

The  general  rules  prescribed  for  the  application  of 
this  basis  of  rates  are  as  follows : 

(1)  The  rates  are  subject  to  the  Southern  Classifi- 
cation, except  where  lower  ratings  are  or  may  be  pub- 
lished by  the  North  Carolina  Corporation  Committee,  in 
which  case  the  lower  ratings  shall  prevail. 

(2)  When  rates  are  not  shown  for  the  exact  distance, 
the  charge  shall  be  the  rate  prescribed  for  the  nearest 
distance.  In  cases  where  the  haul  is  equidistant,  the 
charge  shall  be  that  for  the  next  higher  distance. 

(3)  When  one  railroad  company  has  two  or  more 
routes  between  given  points,  the  rates  shall  be  based 
on  the  shortest  route.  On  joint  hauls  the  lines  handling 
the  traffic  shall  base  their  rates  upon  the  shortest  prac- 
ticable route  having  physical  connection. 

(4)  For  joint  hauls  over  two  or  more  independently 
controlled  railroads  under  the  management  of  companies 
operating  seventy-five  or  more  miles  of  railroad  within 
this  state,  add  the  following  to  the  straight  mileage  rates 
for  the  total  combined  distance: 

Classes3.    123456ABCDEHF 
Rates.  ..5433222222214 

In  the  absence  of  an  agreed  basis  of  division  between 
roads  participating  in  a  joint  haul,  locals  shall  be  used 
as  factors  in  dividing,  after  first  deducting  the  cost  of 
transfer,  if  any,  at  interchange  point. 

(5)  The  minimum  charge  on  small  shipments  shall 
be  for  actual  weight  at  the  tariff  rate,  but  not  less  than 
25  cents  for  a  haul  over  one  road,  or  30  cents  for  a  joint 
haul  over  two  roads,  or  40  cents  for  a  joint  haul  over 
three  or  more  roads. 

^Unless  otherwise  provided,  the  rates  for  Class  F  are  in  cents  per  barre 
and  for  the  other  classes  in  cents  per  100  pounds. 


86 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


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INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    87 


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88        FREIGHT  RATES:    SOUTHERN  TERRITORY 

4.     West  Virginia 

Practically  all  of  the  local  traffic  in  West  Virginia  is 
handled  subject  to  the  Official  Classification. 

Both  the  Norfolk  and  Western  Eailway  and  the  Chesa- 
peake &  Ohio  Railway  use  the  Official  Classification 
as  their  basis  for  rates  and  employ  in  connection  there- 
with a  distance  scale  of  rates  which  they  have  devised. 
Being  in  active  competition  with  the  northern  trunk  lines 
and  their  C.  F.  A.  connections  for  business  from  and  to 
the  eastern  seaboard,  it  naturally  follows  that  the  rates 
charged  are  fixed  by  those  applied  by  the  northern  lines 
upon  like  traffic  between  like  points.  Charleston,  Kenova, 
Huntington,  Parkersburg,  and  Wheeling,  W.  Va.,  will  be 
recalled  as  Western  Termini  Points.* 

In  such  cases,  however,  where  the  rates  are  made  sub- 
ject to  the  Southern  Classification,  the  rates  are  made  by 
the  carriers  and  approved  by  the  railroad  commission 
of  the  state. 


*See  Traffic  Glossary. 


CHAPTER  VII 

INTRASTATE  RATES  IN  SOUTHERN   TERRITORY— Continued 

1.     Kentucky 

In  the  northern  part  of  the  state  the  line  of  the 
Chesapeake  &  Ohio  Railway  follows  the  Ohio  River  from 
Ashland  to  Cincinnati  and  the  C.  F.  A.  scale  is  applied 
between  the  stations  thereon.  Similarly,  the  south  bank 
lines  operating  between  Cincinnati  and  Louisville  are 
in  competition  with  the  north  bank  lines  serving  the  same 
points.  Both  the  north  bank  and  the  south  bank  lines 
are,  in  turn,  in  competition  with  the  river  lines.  This 
has  resulted  in  a  very  low  scale  of  rates  being  main- 
tained by  the  respective  companies.  The  south  bank 
lines,  however,  do  not  apply  the  low  rates  so  established 
to  intermediate  points,  but  hold  them  on  a  somewhat 
higher  basis. 

TABLE  9 
Kentucky  Distance  Rates 


Cents  per  100  Pounds 

Cents 

PER 

Bbl. 

Cents 

PER  100 

Lbs. 

Cents 

PER  Ton 

2.000  Lbs. 

2,240  Lbs. 

i 

Classes' 

1 

2 

3     4     5     6ABCDEH 

F 

K 

L 

M 

10... 

20... 

40... 

50... 
100. .. 
150.. . 
200... 

10 
14 

24 
25 
28 
49 
61 

9 
12 
22 
24 
27 
40 
51 

8776665566 
11     987797789 

20  15   12   10   10   13   10     9   12   15 

21  15   13   10   10   13   10   10   13   15 
24   18   16   14   14   18   11    11   16   17 
37  29  25  23  20  26  23   15  26  33 
47  36  32  28  20  26  23   18  32  33 

10 
14 
18 
20 
20 
38 
38 

3 

4 
5 
6 
8 
9 
10 

60 
80 
100 
100 
120 
170 
195 

90 
100 
120 
130 
180 
220 
240 

KJoverned  by  the  Southern  Classification. 


89 


90 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


TABLE  9— Continued 


Kentucky  Distance  Rates 


Dollars  per  Car 

Cents  per 

100  ] 

Pounds 

Classes' 

N 

O      P      R 

RR 

Miles 

Live  Stock 

8      T     W 

Horses,  Mules, 
and  Cattle 

Single  Deck 

Hogs 

Sheep 

10 

20 

10  ' 

12 

16 

17 

29 

34 

44 

10 
12 
17 
18 
30 
36 
40 

9 
10 
15 
16 
21 
26 
31 

3  3       4 

4  4       5 

5  5       6 
5       5       7 

8       5       7H 

10  9     11 

11  10     12 

3 

3H 
4>i 
5 

8 
83^ 

3  2       4 

4  3       S 

40 

50 

100 

150 

200 

5  4       6 

6  4       6 

6  4       9 

7  7  11 
9       8     11 

'Governed  by  the  Southern  Classification. 

No  maximum  rates  are  established  by  the  Kentucky 
Railroad  Commission,  but  the  rates  established  by  the 
carriers  are  subject  to  a  ratification  by  that  board.  In 
Table  9  are  given  rates  between  some  points  for  repre- 
sentative distances,  which  may  be  taken  as  typical  of 
those  employed  within  the  state. 

In  Table  10  are  given  some  intrastate  and  interstate 
rates  which  are  influenced  by  competitive  conditions. 

TABLE  10 


All-Rail   Rates   Between   Paducah,    Ky.,    and   Specified 
Points  in  Kentucky  and  Indiana 

—      /   ■  = 


Between  Paducah,   Ky. 

AND 


Louisville,  Ky .  .  .  . 
Jeffersonville,  Ind. 
New  Albany,  Ind. 
Owensboro,  Ky.  .  . 


Henderson,  Ky. 
Evansville,  Ind. 


Rates 

IN  Cents 

PER 

100  Pounds 

Except  as  Noted 

1       2 

3       4 

6 

Classes' 
6      A      B 

C 

D      E      H     F« 

35     29 

25     19 

15 

13     12     15 

13 

11     13     15     20 

34  29  24   18   13   11   9   11   9   8   13   14   16 


'Governed  by  the  Southern  Classification. 
2Per  barrel- 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    91 

2.    Virginia 

The  Railroad  Commission  of  Virginia,  in  addition  to 
prescribing  classification  rules  and  regulations  relating 
to  storage,  demurrage  car  service,  and  the  transportation 
of  explosives  by  carriers,  establishes  mileage  class  and 
commodity  rates  for  carriers  within  its  borders. 

In  prescribing  these  rates,  the  commission  paid  par- 
ticular heed  to  the  density  of  the  traffic  in  the  various 
parts  of  the  state.  Rates  for  districts  where  the  traffic 
was  dense  were  made  lower  than  the  rates  applicable  in 
other  sections  of  the  country.  Thus,  we  find  a  lower 
scale  of  state  rates  applicable  between  all  stations  on 
the  Washington,  Danville,  and  Richmond  divisions  of 
the  Southern  Railway  (see  Table  11)  than  is  applicable 
on  the  Norfolk  Division  (see  Table  12). 

In  Table  11  are  given  the  class  rates  applicable  upon 
indicated  branches  of  the  Southern  Railway,  while  in 
Table  12  are  given  similar  rates  over  different  divisions 
of  the  same  railway.  The  rates  set  forth  in  these  tables 
were  authorized  by  the  State  Corporation  Commission 
of  Virginia,  December  31,  1913. 

Specific  distance  rates  are  also  announced  to  apply 
in  connection  with  the  Southern  Railway  upon  the  fol- 
lowing commodities:  Concrete  blocks,  grain  and  mill 
products,  fertilizers,  fire  wood,  logs,  bark,  lumber,  and 
pulp  wood.  The  list  of  commodity  rates  is  not  nearly 
as  comprehensive  as  that  announced  for  other  lines  oper- 
ating in  the  state.  For  example,  in  Table  13  are  indi- 
cated the  number  of  rates  applicable  upon  the  Norfolk 
and  Western  Railway.  It  will  be  observed  from  this 
table  that  this  is  in  a  measure  a  continuation  of  the  class 
scale. 

Representative  commodities  assigned  to  these  addi- 
tional groups  are  set  forth  in  Table  14. 


92 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


TABLE  11 

Southern  Railway  Company — Class  Rates* 
applicable  as  follows: 

(o) — Betweeil  stations  on  Norfolk  Division. 

(6) — Between  stations  on  Keysville  Branch  in  Virginia 

(c) — Between  any  station  on  Norfolk  Division  and  any  station  on  RicK- 
mond,  Washington  or   Danville  Divisions  in  Virg'inia. 

(d) — Between  any  station  on  Keysville  Branch  in  Virginia  and  any  sta- 
tion on  Norfolk,  Richmond,  Washington  or  Danville  Divisions  in  Virginia. 


DISTA 

NCES 

Per  100  pounds 

XI 

Per  100 
lbs. 

Per  ton 
of  2,000 
pounds 

Per  carload 
of  20,000  lbs. 

1 
15 

2 
13 

3 
12 

4 

10 

5 

8 

6 

7 

A 

6 

1 
B 

7 

C 
6 

D 

5 

E 

8 

H 

10 

F 

12 

J 

8 

K 

L 

M 

75 

N 

0 

P 

5  miles  and  under 

4 

70 

9  00 

8  00 

7  00 

10  and  over 

6  miles... 

18 

16 

14 

11 

9 

8 

7 

9 

7 

6 

9 

11 

14 

9 

5 

75 

80 

10  00 

9  00 

8  00 

15  and  over 

10  miles... 

22 

18 

15 

13 

11 

9 

8 

9 

8 

7 

11 

13 

16 

10 

5} 

80 

85 

11  00    10  00 

8  50 

20  and  over 

15  miles... 

25 

21 

18 

16 

14 

10 

10 

11 

9 

8 

14 

16 

18 

11 

6 

85 

1  00 

13  00'  12  00 

9  00 

25  and  over 

20  miles... 

29 

25 

21 

19 

17 

12 

12 

12 

10,9 

17 

19 

20 

12 

7 

95 

1  10 

14  00    14  00 

10  00 

30  and  over 

25  miles... 

33 

28 

24 

22 

19 

13 

13 

13  ll'lO 

17 

20 

20 

I6 

7i 

1  00 

1  20 

15  00    15  00 

10  00 

35  and  over 

30  miles... 

35 

30,25 

23,20114 

13 

14 

12  11 

17 

20 

20 

17 

7i 

1  00 

1  20 

16  00;  15  00 

10  00 

40  and  over 

35  miles... 

35 

30|25  23120114 

13 

14 

12  11 

17 

20 

20 

18 

7i 

1  00 

1  20 

16  00'  15  00 

10  00 

45  and  over 

40  miles... 

38 

33  28,23  20115 

14|15 

12  11  20 

20 

22 

18 

8 

1  10 

1  40 

18  00    16  00 

11  00 

50  and  over 

45  miles... 

40 

35  30  23  20 

1          1 

15 

14 

15 

13  1220 
1     1 

20 

22 

19 

8 

1  10 

1  40 

19  00    16  00 

11  00 

65  and  over 

50  miles... 

42 

38  33'23  20 

16 

15 

16 

1311220 

20 

25 

19 

9 

1  20 

1  50 

1 
20  00    18  00 

12  00 

60  and  over 

55  miles... 

45 

40  3524  21 

16 

16 

18 

14  13120 

21 

26 

20 

9 

1  25 

1  50 

21  00 

18  00 

13  CO 

65  and  over 

60  miles... 

47 

42  35|24  21 

16 

1619 

14  I3I2I 

22 

27 

21 

9 

1  30 

1  60 

24  00 

19  00 

14  00 

70  and  over 

65  miles... 

48 

43  36  24  21 

16 

16119 

15  I3I2I 

23 

28 

21 

9 

1  50 

1  70 

26  00 

20  00 

15  00 

75  and  over 

70  miles... 

52 

44  36  24  21 

1 

17 

16  20 

16  14 

21 

23 

28 

21 

10 

1  60 

1  80 

28  00 

20  00 

16  00 

80  and  over 

75  miles... 

54 

45'36'24  21 

17 

16  20 

16'l4 

21 

24 

29 

21 

11 

1  70 

1  90 

30  00 

23  00 

17  00 

85  and  over 

80  miles... 

55 

46  36  24 

22 

17 

16  20] 17  14 

22 

25 

32 

22 

12 

1  80 

2  00 

32  00    23  00 

18  00 

&0  and  over 

85  miles... 

55 

46  36-25 

22 

17 

16;20'l7 

14 

22 

26 

32 

22 

12 

1  80 

2  10 

33  00'  23  00 

18  00 

95  and  over 

90  miles... 

55 

47  .37.25 

22 

17 

1620,18 

14 

22 

27 

33 

22 

12 

1  80 

2  10 

33  00    25  00 

20  00 

100  and  over 

95  mile.s... 

56 

47  37125 

1 

22 

17 

17(21 

18 

15 

22 

28 

35 

22 

12 

1  80 

2  10 

34  00 

26  00 

20  00 

110  and  over 

100  miles... 

56 

47137 

26  22 

17 

17 

21 

18 

15 

22 

28 

35 

23 

12 

1  80 

2  10 

35  00 

26  00 

20  00 

120  and  over 

110  miles... 

56 

48 '38 

26  22 

17 

17 

21 

18 

15 

22 

28 

36 

23 

12 

L  1  80 

2  10 

36  00 

26  00 

20  00 

130  and  over 

120  miles. . - 

57 

48  39 

26  22 

18 

18 

21 

18 

15 

22 

29 

36 

23 

12 

1  80 

"2  10 

39  00 

26  00 

20  00 

140  and  over 

130  miles... 

57 

48i39 

27  22 

18 

18 

21 

18 

15 

22 

29 

36 

24 

12 

1  80 

2  10 

40  00 

26  00 

20  00 

150  and  over 

140  miles... 

58 

48 

40 

28  22 

18 

18 

21 

18il5 

22 

29 

36 

24 

12 

1  80 

2  10 

40  00 

26  00 

20  00 

160  and  over 

150  miles... 

59 

49 

40 

29  22 

18 

18 

21 

18 

1     t 
15  22,29 

36 

24 

12 

1  80 

2  10 

40  00 

26  00 

20  00 

170  and  over 

100  miles... 

59 

50  41 

29'22 

18 

18 

21 

19 

15 

22 

2!t 

37 

25 

12 

1  80 

2  10 

40  00 

26  on 

20  00 

180  and  over 

170  miles... 

59 

.5041 

29;22 

18 

18 

21 

19 

15 

22 

29 

37 

25 

12 

1  80 

2  10 

40  00    28  06 

20  00 

190  and  over 

180  miles... 

59 

50!41 

29 

22 

18 

18 

21/19 

15 

22 

29 

37 

25 

12 

1  80 

2  10 

40  00 

28  00 

21  00 

200  and  over 

190  miles... 

59 

50 

41 

29 

22 

18 

18 

21  19 

15 

22 

29 

37 

26 

12J 

2  00 

2  30 

42  00 

28  00 

21  00 

210  and  over 

200  miles... 

59 

50 

41 

29 

22 

18 

18 

21  19 

15 

22 

29 

37 

26 

m 

2  00 

2  30 

42  00 

28  00 

21  00 

220  and  over 

210  miles... 

60 

51 

41 

29 

23 

18 

18 

22  19 

17123 

29 

37 

26 

14. 

2  00 

2  30 

42  00 

28  00 

21  00 

230  and  over 

220  miles... 

62 

52  41 

29 

23 

19 

19 

23  19 

17|23 

29 

37 

26 

14 

2  00 

2  30 

42  00 

28  00 

22  CO 

240  and  over 

230  miles... 

63 

52  42 

30;25 

19 

19 

23  19 

17125 

30 

38 

26 

14 

2  00 

2  30 

42  00 

28  00 

22  00 

250  and  over 

240  miles.. i 

65 

54 

42 

31 

27 

20 

20 

24  20 

18  27 

31 

40 

26 

14 

2  10 

2  30 

44  00 

30  00 

23  00 

260  and  over 

250  miles... 

67 

56 

44 

33 

29 

21 

21 

25  22 

18  29 

33 

43 

28 

15 

2  10,  2  40 

44  00 

31  00 

24  00 

270  and  over 

260  miles... 

69 

58 

46 

35 

30 

22 

22 

25 '22 

20  30 

35 

45 

29 

16 

2  20    2  40 

46  00 

32  00 

25  00 

280  and  over 

270  miles... 

72 

60 

48 

36 

31 

24 

24 

26124 

20 

31 

36 

46 

30 

16 

2  25 

2  50 

46  00 

32  00 

26  00 

290  and  over 

280  miles... 

74 

62 

48 

37 

32 

26 

26 

27124 

20 

32137 

48 

31 

17 

2  30 

2  50 

47  00 

33  00 

26  00 

300  and  over 

290  miles... 

75 

62 

50 

37 

32 

27 

26 

27  24 

21 

32 

37 

49 

31 

17 

2  30 

2  60 

48  00 

34  00 

27  00 

320  and  over 

300  miles... 

76 

64 

52 

40 

34 

28 

28 

29  26 

21 

34 

40 

52 

32 

18 

2  30 

2  60 

49  00 

35  00 

28  00 

340  and  over 

320  miles... 

79 

66 

53 

41 

37 

29 

29 

30^ 

22  37 

41 

52 

34 

19 

2  40 

2  80 

50  00 

36  00 

29  00 

360  and  over 

340  miles... 

S2 

68 

55 

42 

38 

30 

30 

3126 

22  38 

42 

53 

35 

19 

2  50 

2  90 

52  00 

37  00 

31  00 

380  and  over 

360  miles... 

53 

68 

55 

42 

39 

31 

31 

32  27 

22 

39 

42 

53 

36 

20 

2  60 

3  00 

64  00 

38  00 

31  00 

400  and  over 

380  miles... 

84 

70 

57 

44 

39 

32 

32 

32  27 

23 

39 

44 

55 

37 

20 

2  70 

3  10 
3  2d 

a4  00 

39  00 

31  00 

Over  400  miles 

86 

72 

57 

45 

40  S2 

32 

33  w 

24 

40 

45 

56 

38 

22 

2  80 

55  00 

39  00 

32  00 

» 

1 

l__ 

•These  rates  were  authorifed  by  the  State  Corporation  Commission  of  Virginia  and 
are  governed  by  the  Virginia  Classification  with  Exception  Sheet  No.  1  thereto. 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    93 

TABLE  12 

Southern  Railway  Company — Class  Rates^ 
applicable  as  follows: 


(a) — Between  all  stations  on  the  Washington,  Danville. and  Richmond 
Divisions  in  Virginia,  except  Keysville  Branch. 


DISTANCES 

Per  100  pounds 

5 

£1 

Per  100  lbs. 

Per  ton 
of  2,000 
pounds 

Per  carload 
of  20.000  lbs. 

1 
12 

2 
10 

3 

8 

4 
6 

5 

5 

6 
4 

A 

4 

B 

4 

C 

4 

D 

4 

E 
S 

F 

8 

H 

6 

J 
6 

K 

L 

M 

N 

O 

P 

6  miles  and  under 

3 

50 

60 

7  00 

7  00 

5  00 

10  and  over     5  miles... 

16 

13 

11 

9 

7 

6 

6 

6 

6 

6 

7 

12 

9 

8 

4 

60 

70 

8  00 

8  00 

6  00 

20  and  over    10  miles... 

20 

16 

13 

11 

9 

8 

7 

8 

7 

7 

9 

14 

11 

10 

6 

70 

90 

12  00 

9  00 

7  00 

30  and  over   20  miles... 

24 

19 

15 

13 

11 

10 

8 

10 

8 

8 

11 

16 

13 

12 

6 

80 

1  00 

14  00 

10  00 

9  00 

40  and  over  30  miles... 

27 

22 

17 

15 

13 

10 

8 

10 

9 

8 

13 

18 

15 

14 

6 

90 

1  10 

15  00 

11  00 

9  00 

60  and  over  .40  miles... 

30 

24 

19 

16 

14 

10 

8 

10 

10 

8 

14 

20 

16 

14 

6 

1  00 

1  20 

16  00 

12  00 

10  00 

60  and  over   50  miles... 

33 

26 

21 

17 

15 

11 

9 

11 

11 

9 

15 

22 

17 

15 

7 

1  00 

1  20 

16  00 

13  00 

11  00 

70  and  over   60  miles... 

36 

28 

23 

18 

16 

11 

9 

12 

12 

9 

16 

24 

18 

15 

7 

1  00 

1  20 

16  00 

14  00 

12  00 

80  and  over   70  miles... 

39 

30 

25 

18 

16 

11 

10 

13 

12 

10 

16 

24 

18 

16 

8 

1  10 

1  30 

18  00 

16  00 

13  00 

90  and  over  80  miles... 

40 

32 

27 

18 

16 

11 

11 

14 

12 

10 

16 

24 

18 

17 

8 

1  20 

1  40 

19  00 

17  00 

14  00 

lOOandover   90 miles... 

40 

34 

27 

18 

16 

11 

11 

15 

12 

10 

16 

24 

18 

18 

8 

1  30 

1  50 

19  00 

17  00 

15  00 

110  and  over  100  miles. . . 

40 

35 

27 

18 

16 

11 

11 

16 

12  10161 

24 

18 

18 

9 

1  30 

1  50 

22  00 

18  00 

16  00 

120  and  over  110  miles... 

42 

36 

28 

19 

17 

12 

12 

17 

13 

11  17 

26 

19 

18 

91 

1  30 

1  50 

25  00 

22  00 

16  00 

130  and  over  120  miles.. - 

44 

37 

29 

19 

17 

13 

13 

17 

14 

12  17 

28 

19 

18 

n 

1  30 

1  50 

28  00 

22  00 

16  00 

140  and  over  130  miles... 

46 

38 

31 

21 

17 

14 

14 

17 

14 

1217 

28 

21 

19 

95 

1  40 

1  60 

30  00 

22  00 

16  00 

150  and  over  140  miles... 

47 

40 

33 

23 

17 

14 

14 

17 

14 

12  17 

28 

23 

20 

9i 

1  50 

1  70 

32  00 

22  00 

16  00 

160  and  over  150  miles... 

48 

41 

33 

23 

18 

14 

14 

18 

14 

12  18 

28 

23 

20 

9i 

1  55 

1  75 

33  00 

22  00 

16  00 

170  and  over  160  miles... 

49 

42 

33 

23 

18 

15 

15 

18 

14 

12  18 

28 

23 

21 

13 

1  55 

1  75 

33  00 

23  00 

16  00 

180  and  over  170  miles... 

49 

42 

33 

23 

18 

15 

15 

18 

15 

13  18 

30 

23 

22 

10 

1  55 

1  75 

34  00 

24  00 

18  00 

190  and  over  180  miles... 

50 

43 

33 

23 

19 

16 

15 

19 

16 

14  19 
1 

32 

23 

22 

Hi 

1  60 

1  75 

34  00 

25  00 

18  00 

200  and  over  190  miles... 

52 

44 

34 

24 

20 

16 

16 

20 

16 

15  20 

32 

24 

24 

ni 

1  65 

1  75 

35  00 

25  00 

18  00 

210  and  over  200  miles... 

54 

45 

35 

25 

21 

16 

16 

20 

16 

15  21 

32 

25 

25 

Hi 

1  70 

1  75 

35  00 

25  00 

18  00 

220  and  over  210  miles... 

56 

46 

36 

26  22 

17 

17 

21 

17 

15  22 

34 

26 

25 

111 

1  70 

1  75 

35  00 

25  00 

18  00 

230  and  over  220  miles... 

57 

47 

37 

26l23 

17 

17 

22 

17 

15  23 

34 

26 

25 

lU 

1  75 

1  75 

35  00 

25  00 

19  00 

240  and  over  230  miles... 

58 
1 

48 

38 

27 

24 

18 

18 

23 

17 

15  24 
1 

34 

27 

25 

111 

1  75 

1  75 

35  00 

25  00 

19  00 

250  and  over  240  miles... 

leo 

49 

39 

S8 

25 

19 

19 

23 

18 

16  25 

36 

28 

26 

12 

1  80 

1  80 

36  00 

26  00 

20  00 

260  and  over  250  miles... 

62 

51 

41 

30 

27 

21 

21 

23 

19 

17 

27 

38 

30 

27 

13 

1  80 

1  85 

37  00 

27  00 

21  00 

270  and  over  260  miles... 

63 

52 

42 

31 

28 

22 

22 

24 

20 

18 

28 

40 

32 

28 

14 

1  85 

1  90 

38  00 

28  00 

22  00 

280  and  over  270  miles... 

64 

53 

43 

32 

28 

23 

23 

24 

20 

18 

28 

40 

32 

28 

14 

1  85 

1  90 

39  00 

28  00 

22  00 

290  and  over  280  miles... 

65 

54 

43 

33 

29 

24 

24 

25 

21 

19 

29 

42 

33 

29 

15 

1  90 

1  95 

40  00 

29  00 

23  00 

300  and  over  290  miles... 

66 

55 

44 

33 

30 

24 

24 

25 

21 

19 

30 

42 

33 

29 

15 

1  90 

1  95 

41  00 

29  00 

23  00 

310  and  over  300  miles... 

67 

56 

45 

34 

31 

25 

25 

26 

22 

20 

31 

44 

34 

30 

16 

1  95 

2  00 

41  00 

30  TO 

24  00 

320  and  over  310  miles... 

68 

57 

46 

35 

32 

26 

26 

27 

23 

21 

32 

46 

35 

30 

16 

1  95 

2  00 

42  00 

3. '00 

25  00 

330  and  over  320  miles... 

70 

58 

47 

36 

33 

27 

27 

28 

23 

21 

33 

46 

36 

31 

17 

2  00 

2  05 

42  00 

31  00 

26  00 

350  and  over  330  miles... 

72 

59 

48 

37 

34 

28|28 

28 

23 

21 

34 

46 

37 

33 

17 

2  05 

2  40 

46  00 

32  00 

27  00 

375  and  over  350  miles... 

74 

60 

50 

38 

35 

29  29 

29 

23 

21 

35 

46 

38 

34 

18 

2  15 

2  60 

48  00 

33  00 

28  00 

400  and  over  375  miles... 

76 

62'51 

39136 

29  29 

30 

24 

21 

36 

48 

39 

35 

18 

2  30 

2  80 

49  00 

34  00 

28  00 

425  and  over  400  miles... 

178 

64 

52 

40;36 

30  30 

30 

25 

22 

36 

50 

40 

36 

20 

2  40 

2  85 

49  00 

34  00 

29  00 

450  and  over  425  miles... 

180 

66 

53 

41 

37 

30  30 

31 

25 

22 

37 

50 

41 

36 

20 

2  40 

2  85 

51  00 

35  00 

30  00 

475  and  over  450  miles... 

81 

67 

54 

41 

38 

31  31 

32 

26 

22 

38 

51 

41 

37 

20 

2  45 

2  85 

53  00 

36  00 

30  00 

500  and  over  475  miles... 

82.68 

55 

42 

38 

3131 

32 

26 

22 

38 

51 

42 

37 

20 

2  45 

2  85 

54  00 

37  00 

31  00 

'These  rates  were  authorized  by  the  State  Corporation  Commission  of  Virginia  and 
are  governed  by  the  Virginia  Classification  with  Exception  Sheet  No.  1  thereto. 


94        FREIGHT  RATES:    SOUTHERN  TERRITORY 

TABLE  13 
The  Norfolk  and  Western  Railway  Company — Commodity 

Rates* 


DISTANCES 


6  miles  and  under.. 

10  and  over  5  miles. . 

11  miles 

12  miles 

13  miles , 

14  miles , 

15  miles , 

16  miles 

17  miles 

18  miles 

19  miles 

20  miles 

25  and  over   20  miles. 


30  and  over 
35  and  over 
40  and  over 
45  and  over 
50  and  over 

55  and  over 
60  and  over 
65  and  over 
70  and  over 
75  and  over 

80  and  over 
85  and  Over 
90  and  over 
95  and  over 
100  and  over 


25  miles. 
30  miles. 
35  miles. 
40  miles. 
45  miles. 

50  miles. 
55  miles. 
60  miles. 
65  miles. 
70  miles. 

75  miles. 
80  miles. 
85  miles. 
90  miles. 
95  miles. 


110  and  over  100  miles.. 
120  and  over  110  miles.. 
130  and  over  120  miles.. 
140  and  over  130  miles., 
150  and  over  140  miles.. 

160  and  over  150  miles.. 
170  and  over  160  miles.. 
180  and  over  170  miles.. 
190  and  over  180  miles.. 
200  and  over  190  miles.. 

210  and  over  200  miles.. 
220  and  over  210  miles.. 
230  and  over  220  miles.. 
240  and  over  230  miles.. 
250  and  over  240  miles.. 

260  and  over  250  miles.. 
270  and  over  260  miles.. 
280  and  over  270  miles.. 
290  and  over  280  miles.. 
300  and  over  290  miles.. 

310  and  over  300  miles.. 
320  and  over  310  miles.. 
330  and  over  320  miles.. 
340  and  over  330  miles., 
aao  and  over  340  miles.. 


In  cents  per  100  pounds 


aa 

BB 

CC 

DD 

EE 

FF 

GG 

HH 

3 

3 

5 

6 

5 

3 

6 

U 

3 

3 

5 

7 

5 

3 

6 

H 

4 

4 

6 

8 

5 

34 

8 

1.9 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

4 

4 

6 

8 

5 

3i 

8 

2 

4 

4 

6 

8 

5 

34 

8 

2 

5 

5 

7 

9 

5 

4 

10 

2 

5 

5 

7 

9 

5 

4 

10 

2 

5^ 

5* 

8 

10 

5 

5 

11 

2h 

5h 

5^ 

8 

10 

5 

5 

11 

24 

6 

6 

8* 

11 

6 

5 

12 

3 

6 

6 

84 

11 

6 

5 

12 

3 

6^ 

6^ 

9 

12 

6 

5J 

13 

34 

6^ 

64 

9 

12 

6 

54 

13 

34 

7 

7 

94 

13 

64 

6 

14 

34 

7 

7 

94 

13 

64 

6 

14 

3i 

7i 

7i 

10 

14 

64 

64 

15 

4 

7^ 

n 

10 

14 

64 

64 

15 

4 

8 

8 

104 

144 

7 

7 

16 

4 

8 

8 

lOi 

144 

7 

7 

16 

4 

8f 

84 

U 

15 

8 

74 

17 

4 

Si 

84 

11 

15 

8 

74 

17 

4 

9 

9 

114 

154 

9 

74 

18 

44 

9^ 

94 

12 

16 

9 

74 

19 

44 

10 

10 

124 

164 

9 

9 

20 

5 

10^ 

104 

13 

17 

104 

9 

21 

5 

11 

11 

134 

174 

11 

10 

22 

5 

IH 

114 

14 

18 

111 

10 

23 

54 

12 

12 

I4i 

184 

lU 

11 

24 

54 

12i 

124 

15 

19 

114 

l/ 

25 

54 

12^ 

13 

15 

19 

12 

26 

54 

13 

134 

15 

19 

12 

12 

27 

54 

13 

14 

15 

19 

124 

12 

28 

6 

131 

144 

16 

20 

m 

12 

29 

6 

13^ 

144 

16 

20 

12i 

12 

29 

6 

13^ 

144 

16 

20 

13 

12 

29 

64 

13i 

144 

16 

20 

13 

12 

29 

64 

131 

15 

16 

20 

13 

12 

30 

64 

13^ 

15 

16 

20 

13i 

13 

30 

7 

13^ 

15 

16 

20 

134 

13 

30 

7 

m 

15 

16 

20 

134 

13 

30 

7 

I'ii 

15 

16 

20 

14 

13 

30 

74 

14 

154 

16 

20 

14 

13 

30 

74 

14 

154 

16 

20 

14 

13 

30 

74 

14 

154 

16 

20 

14 

13 

30 

74 

14 

154 

16 

20 

144 

13 

30 

74 

14 

154 

16 

20 

144 

13 

30 

74 

II 


a^ 


2 
2S 
3' 
3 

3 
3 
3 
3 

3 
3 
3 
3 
3 


JJ 


80 
80 
90 
90 

90 
90 
90 
90 

90 
90 
90 
90 
1  00 


KK 


Per  ion  2.000  poundo 


I.L  MM  NNjOO   PP   QQ   IJR 


7. 
80 
85 
85 

85 
85 
85 
90 

90 
90 
90 
90 
95 


3  1  00  1  00 
3h  1  10  1  05 
34  1  10  1  10 
34  1  15  1  15 
34  1  15  1  20 


1  20 
1  20 
1  25 
1  25 
1  30 

1  30 
1  35 
1  35 
1  40 
1  40 

1  45 
1  50 
1  55 
1  60 
1  65 

1  70 
1  75 
1  80 
1  85 
1  85 

1  90 
1  90 
1  95 
1  95 


1  40 
1  40 
1  40 
1  40 
1  40 


50  2 
50  2 


50 
80 
90 
90 

90 
90 
90 
90 

90 
90 
90 
90 
1  00 


00 

20 

1  20 

1  40 

1  40 


1  50 
1  50 
1  50 

1  60 
1  60 
1  60 
1  60 
1  60 


1  60 

60 

1  70 

1  70 

80 

1  80 
90 
90 
00 
00 

10 
20 

2  30 
2  40 
2  50 


1  70  2  85 

1  70!2  90 

1  70:3  00 

1  70l3  10 


2  00  1  70 


2  15 
2  15 
2  20 
2  20 
2  25 


180 
1  80 
1  80 
1  80 
1  80 


3  20 

3  30 
3  40 
3  50 
3  60 
3  70 

3  80 

3  90 

4  00 
4  10 
4  20 


35 
35 

38 
42 

46 
50 
54 
57 

60 
64 
68 
70 
75 

85 

95 

1  05 

1  15 

1  15 

1  25 
1  25 
1  35 
1  35 
1  45 

1  45 
1  55 
1  55 
1  65 
1  65 

1  70 
1  75 
1  80 
1  85 
1  90 

1  95 

2  00 
2  05 
2  10 
2  15 


60 
2  70 
2  80 
2  90 

2  90 

3  00 
3  00 
3  10 
3  10 
3  20 


35 
35 
38 
42 

45 

45 
45 
50 

50 
50 
50 
50 
55 

60 
65 
70 
75 
75 

80 
80 
85 
85 
95 

95 
1  00 
1  00 
1  05 
1  05 


1  10 
1  15 
1  20 
1  25 
1  30 


1  35 
1  40 
1  45 
1  50 
1  50 

1  50 
1  50 
1  50 
1  50 
1  50 

1  50 
1  50 
1  50 
1  50 
1  50 

1  50 
1  50 
1  50 
1  50 


35 
35 
38 
42 

46 
50 
54 
67 

60 
64 
68 
70 
75 

02 
14 
26 
38 
38 

50 
50 
62 
62 
74 


1  74 
1  86 
1  86 
1  98 

1  98 

2  04 
2  10 
2  16 
2  22 

2  28 


60 
60 
70 
70 

70 
70 
70 
70 

70 
70 
70 
70 
80 

80 

9jn 

90 
1  00 
1  00 


35  25 

35  25 

38  30 

421  30 

45  30 

45  30 

45  30 

50  30 


SO 
51 
54 
56 
60 

82 

91 

1  01 

1  10 

1  10 


1  lOU  20 
1  lO'l  20 
1  20  1  30 
1  20  1  30 
1  25  1  39 


1  25 
1  30 
1.30 
1  35 
1  35 


1  39 
1  49 
1  49 
1  58 
1  58 


1  40  1  63 

1  45  1  68 

1  50  1  73 

1  5511  78 

1  60  1  82 

1  65  1  87 

1  70  1  92 

1  75  1  97 

1  80  2  02 

1  85  2  06 


2  64|1  85'2  11 


2  64 
2  76 

2  88 

3  00 


3  60 
3  60 
3  72 
3  72 


1  5013  84 


1  90  2  11 

1  95  2  21 

2  00  2  30 
2  05|2  40 


10  2  50 

15*2  59 

20  2  69 

25|2  78 

30  2  78 

35  2  88 

40  2  88 

4512  9& 

50  2  9S 
55I3  07 


30 
30 
30 
30 
35 

35 
40 
40 
45 
45 

60 
50 
55 
65 
60 

60 
65 
65 
70 
70 

75 
75 
80 
80 
85 

83 
90 
90 
05 
95 

1  00 
1  00 
1  05 
1  OS 
1  10 

1  10 
1  15 
1  IS 

1  20 
1  20 

1  25 
1  25 
1  2S 
1  25 
1  30 


iTheae  rates  were  authorized  by  the  State  Corporation  Commission  of  Virginia. 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    95 


TABLE  14 
Special  Commodity  Classification 


Commodity 

Class 

Commodity 

Class 

Afihfia.  coal 

MN 
00 

GG 
HH 

CC 
DD 
EE 
KK 

Blocks,  paving 

II 

Rone  dust.  C.  L    

Brick,  C.  L 

LL 

Building  material,  brick  and 
woodpn         .     .         

Cement,  C.  L 

FF 

Gravel,  C.  L 

RR 

Cinders,  C.  L 

Pig  iron,  C.  L 

Lime,  agricultural,  L.  C.  L. .  . 
Lumber,    oak,     hemlock, 
soruce.  C.  L 

JJ 

Iron  and  steel  articles  as  per 

special  list,  C.  L 

L  C  L 

QQ 

AA 

Felt,  C.  L 

Logs,   except  oak,   hemlock, 
and  spruce 

Wood,  fire,  C.  L 

BB 

A  very  large  per  cent  of  the  earnings  of  the  Norfolk 
and  Western  Railway  is  derived  from  its  coal  traffic.  It 
is  interesting  to  note  the  scale  of  rates  which  has  been 
provided  by  the  commission  for  this  commodity  over  this 
railroad.    These  rates  are  reproduced  in  Table  15. 

TABLE  15 
Norfolk    and    Western    Railway    Company — Commodity 

Rates^ 
coal,  carloads 

Minimum   weights:    On   Anthracite,   30,000   pounds;  on   Bituminous, 
40,000  pounds. 

Per  ton  2,000  pounds 


distances 

Rate 

distances 

Rate 

10  miles  and  under 

$      55 

60 

75 

95 

1   10 

1  25 
1  35 
1  45 
1  50 
1  55 

l"^60 
1  60 
1  65 
1  65 
1  70 

1  75 
1  75 
1  80 

180  and  over  170  miles 

$1  85 

15  and  over    10  miles 

20  and  over    15  miles 

190  and  over  180  miles 

200  and  over  190  miles 

1  85 
1  90 

30  and  over    20  miles 

210  and  over  200  miles 

1  90 

40  and  over    30  miles 

220  and  over  210  miles   

1  95 

50  and  over    40  miles , 

230  and  over  220  miles   . 

1  95 

60  and  over    50  miles 

70  and  over    60  miles 

240  and  over  230  miles 

250  and  over  240  miles 

1  95 
1  95 

80  and  over    70  miles 

260  and  over  250  miles 

2  00 

1  90  and  over    80  miles 

270  and  over  260  miles   . 

2  00 

loo  and  over    90  miles 

110  and  over  100  miles 

280  and  over  270  miles 

290  and  over  280  miles 

2  05 
2  10 

120  and  over  110  miles. 

300  and  over  290  miles 

2  10 

130  and  over  120  miles 

140  and  over  130  miles 

310  and  over  300  miles. 

2  15 

320  and  over  310  miles 

2  15 

150  and  over  140  miles. ...'!.... 
160  and  over  150  miles 

33D  and  over  320  miles 

340  and  over  330  miles 

350  and  over  340  miles 

2  15 
2  15 
2  20 

170  and  over  160  miles 

'These  rates  were  authorized  by  the  State  Corporation  Commission  of  Virginia. 


96 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


3.     South  Carolina 

The  Railroad  Commission  of  South  Carolina  not  only 
prescribes  regulations  and  rules  concerning  transporta- 
tion in  general,  demurrage,  storage,  milling  in  transit, 
and  exceptions  to  the  Southern  Classification,  but  it  also 
prescribes  class  and  commodity  rates  applicable  within 
the  state  of  South  Carolina.  The  commission  prescribes 
a  standard  class  tariff  and  commodity  tariffs  for  a  num- 
ber of  other  commodities.    These  commodity  tariffs  are 

TABLE  16 

Freight  Rates  Applying  on  Classified  Traffic  in  South 

Carolina^ 


Centb  peb  100  Pounds 

Cents 

Cents 

PER 

PER  Bbl. 

100  L 

BS. 

Miles 

Classes^ 

1 

2 

3 

4       5 

6 

A      B      C      D 

E 

H 

F 

J 

K 

5 

12 

11 

9 

7       6 

6 

6       6       5       4 

6 

8 

10 

6 

6 

20 

24 

22 

19 

16     13 

12 

10     12       8       7 

13 

14 

15 

10 

8 

40 

36 

32 

28 

26     19 

18 

13     16     10       9 

19 

24 

19 

19 

9 

100 

55 

48 

39 

34     26 

23 

17     21      15     13 

26 

34 

30 

28 

12 

200 

67 

57 

49 

44     36 

27 

21     24     21      16 

34 

42 

42 

37 

14 

300 

77 

67 

59 

54     46 

32 

22     27     24     19 

39 

47 

48 

42 

16 

'All  Joint  rates  are  80  per  cent  of  the  local  rates  of  the  individual  line. 
"Governed  by  the  Southern  Classification. 

TA\pLE  16— Continued 

Freight  Rates  Applying  on  Classified  Traffic  in  South 

Carolina* 


Miles 

Cents  per  Ton, 
2,000  Lbs. 

Dollars  per  Carload, 
20,000  Lbs. 

Cents  peb 
100  Lbs. 

Classes^ 

L            M 

NOP 

R          U 

5 

20 

40 

100 

200 

40           80 

60         115 

80         140 

120         205 

170          265 

220         320 

10             6             6 
13           11             9 
17           13           11 
27           19           12 M 
33H       2514       14Ji 
38H       30           17M 

5           6 

8           8 

10         12 

14         15 

18         18 

300 

21         22 

•AH  joint  rates  are  80  per  cent  of  the  local  rates  of  the  individual  line. 
^Governed  by  the  Southern  Classification. 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    97 

published  as  special  tariffs  and  are  applicable  within  the 
state  except  in  cases  where  tariffs  for  individual  roads 
take  precedence.  Table  16  shows  the  local  mileage  rates 
on  classes  prescribed  by  the  commission. 

Joint  rates  are  20  per  cent  of  the  sum  of  the  local 
rates.  These  rates  are  maximum  rates  only  and  the  car- 
riers may  make  lower  rates  provided  no  discrimination 
is  caused  thereby. 

Table  17  shows  the  rates  on  a  certain  number  of  com- 
modities for  certain  distances.  This  table  was  com- 
piled from  the  several  commodity  tariffs  prescribed  by 
the  commission.  The  special  commodity  rates  prescribed 
for  individual  carriers  are  sometimes  lower  and  some- 
times higher  than  these  rates  which  have  general  appli- 
cation. On  the  lines  of  dense  traffic,  the  rates  are  lower 
than  on  the  lines  where  traffic  is  not  so  dense. 

TABLE  17^ 

Representative  Rates  Applicable  Upon  Specific  Commod- 
ities IN  South  Carolina^ 


Lumber 

Fertilizers 

Cotton 

Cord  Wood 

Cotton 

Starch 

Dollars  per 

Cents  per 

Cents  per 

Cents  per 

Piece  Goods 

Cents  per 

Miles 

C.  L.  of 

Ton  of 

100  Lbs. 

Cord 

Cents  per 

100  Lbs. 

24,000  Lbs. 

2,000  Lbs. 
Min.  C.  L. 
20,000  Lbs. 

Min.  C.  L. 
10  Cords 

100  Lbs. 

Min.  C.  L. 
20,000  Lbs. 

5 

5 

75 

7 

40 

9 

9 

20 

8 

95 

10 

50 

12 

13 

40 

10 

125 

18 

70 

14 

17 

100 

13J 

185 

26 

105 

20 

20 

200 

16J 

260 

35 

28 

23 

300 

19  i 

275 

43 

30 

25 

'The  rates  in  this  table  are  governed  by  the  Southern  Classification. 
'All  Joint  rates  are  80  per  cent  of  the  local  rates  of  the  individual  line. 


4.    Alabama 


The  state  of  Alabama  does  not  prescribe  class  rates. 
It  does,  however,  prescribe  certain  mileage  rates  on  a 
number  of  commodities,  which  rates  may  not  be  exceeded 
by  the  carriers. 


98 


FREIGHT  RATES:    SOUTHERN  TERRITORY 


In  Tables  18  and  19  are  given  representative  class 
rates  applying  between  points  in  Alabama.  These  rates 
are  announced  by  the  carriers. 

TABLE  18 

Class  Rates  from  Birmingham,  Ala.,  to  Alabama  Common 

AND  Local  Points 


From  Birmingham.  Ala.,  to 

R 

ATE6 

I  IN 

Cen 

TS  PER  100  Pounds  Except  as 

Noted 

IN  Alabama 

1 

2 

3 

4 

5 

6 

Classesi 
A   B 

C 

D 

E 

H 

F3 

Sylacauga 

39  32  30  22 
47  41  36  31 
52  45  40  32 
29  25  22  19 
37  32  28  25 
50  44  38  29 

45  42  36  34 
62  63  47  39 

46  40  38  32 
50  44  38  29 
72  62  54  49 
78  67  67  52 
80  69  58  53 
65  52  46  41 
55  45  40  35 
91  80  71  56 
85  74  62  50 
64  55  50  39 
67  49  45  35 
74  62  52  42 
94  81  77  61 
50  43  36  30 

64  64  46  37 
50  46  38  29 

65  45  40  35 
74.7  65.7  59.4  49 
87.3  74.7  65.7  52 
82  68  60  50 
70  60  54  47 

47  40  33  26 

66  48  43  38 
66  67  50  45 
69  58  51  38 

20  16 

27  22 
25  20 
18  17 
24  22 

24  19 
30  19 
36  301 

25  20 
24  19 
44  38 

47  43 

48  44 
35  30 

30  25 
46  39 
41  35 

31  24 

28  22 
34  27 
52  42 
24  20 
28  26 
24  21 
30  25 

41  34 
43  37 

42  35 
421  32 
24  191 
33  28 
40  37 
30  26 

12  16 
18  24 
20  21 

17  17 
22  22 

18  17 
18  19 

29  30 
20  21 
18  17 
31  35 
43  43 
38  42 

30  30 
25  25 
33  34 

28  31 
20  24 
16  22 

24  30 
33  34 
15  17 

29  31 
18  17 

25  25 

31  32 
32.4  34 
28  28 
31  32 

18  19 

26  28 
37  37 

19  18 

13  9  20  22 

14  11  24  27 
12  11  27  30 

11  9  17  17 

12  10  22  22 

15  11  27  19 

13  12  30  30 

18  16  321  30 
12  11  27  30 
15  11  27  19 
20  16  40  40 
22  17  43  43 

22  17  44  44 

25  20  35  41 
20  18  30  35 
24  20  46  48 
24  20  41  42 

15  14  30  34 

14  13  27  31 

24.3  20  35  45 
24  20  521  51 

17  13  23  28 

26  21  28  37 

16  13  28  32 
20  18  30  35 

23.4  19.8  43  39 
26.122.5  44.146 
24  22  40  45 

23  19  411  40 
12  10  211  25 
16  13  31  31 

19  15  37  37 

18  13  21  45 

26 

Sycamore^ 

28 

Talladega 

24 

Calera 

22 

ThorsbyJ 

24 

Montgomery 

22 

Wellington 

26 

Woodruffs 

36 

Anniston 

24 

Selma 

22 

Andalusia 

40 

Pera2 

44 

Samson 

44 

Huntsville 

50 

Holly  wood^ 

40 

Ozark 

41 

Troy 

41 

Eufaula 

30 

Opelika 

28 

Franklin^  (Macon  Co.) 

Dothan 

44 
41 

Tuscumbia 

26 

Leighton^ 

52 

Decatur 

30 

Elko2 

40 

Whitehall^ 

42 

Roba 

52  2 

Hurtsboro 

46 

Billingsley 

44 

Tuscaloosa 

24 

Chinneby 

34 

Georgiana 

38 

Mobile 

31 

iGoverned  by  the  Southern  Classification. 
'Intermediate  points. 
'Per  barrel. 


5.     Mississippi 


The  state  of  Mississippi  does  not  prescribe  rates  for 
the  carriers,  but  it  modifies  or  approves  tariffs  promul- 
gated by  the  carriers  upon  traffic  moving  within  its 
borders.  The  state  once  prescribed  classification  of 
freight,  but  this  has  been  supplanted  by  the  Southern 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY    99 


TABLE  19 

Class  Rates  from  Mobile,  Ala.,  to  Alabama  Common  and 

Local  Points 


From  Mobile,  Ala.,  to 

THE    FOLLOWINQ    PoiNTa 

IN  Alabama 


Ida! 

Thorsby2 

Montgomery 

Akron 

Brown* 

Selma 

Eutaw* 

Stewart' 

Prattville 

Robas 

Hurtsboro 

Thompson' 

Union  Springs 

Youngblood' 

Troy 

Red  Level' 

Andalusia 

Pera' 

Samson' 

Aired' 

Perdido' 

Whitehall' 

Ozark 

Brundidge' 

Jonesville' 

Three  Notch  Road'.  . 

Eufaula 

Guerry  ton' 

Seale' 

Motts' 

Opelika 

Franklin' 

Dothan 

Newton' 

Barnes  Cross  Roads'. 

Hartford' 

Florala 

Hacoda' 

Huntsville 

Hollywood' 

Birmingham 

Moragne' 

Attalla 

Tuscaloosa 

Shiras' 

Fleming' 

York 

Pell  City 

Eden' 

McFall' 


Rates  in  Cents  per  100  Pounds  Except  as  Noted 


Classes' 

1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F3 

72 

62 

54 

49 

44 

40 

37 

37 

22 

19 

40 

40 

44 

72 

62 

54 

49 

44 

40 

38 

40 

22 

17 

40 

40 

44 

50 

40 

30 

24 

20 

20 

16 

20 

14 

12 

24 

19 

24 

79 

69 

58 

45 

42 

31 

20 

23 

16 

12 

39 

25 

24 

72 

62 

53 

45 

38 

33 

28JI 

31 

22 

19 

43 

41 

42 

60 

40 

30 

24 

20 

20 

15 

20 

14 

12 

24 

19 

24 

79 

69 

58 

45 

42 

31 

20 

23 

24 

20 

39 

19 

48 

62 

50 

38 

32 

28 

28 

20 

26 

19 

17 

29 

24 

34 

92 

76 

62 

47 

39 

36 

30 

37 

27 

24 

43 

46 

50 

98 

80 

66 

50 

42 

38 

31 

38 

29 

25 

46 

49 

60 

88 

70 

58 

45 

39 

35 

30 

36 

25 

22 

43 

41 

46 

90 

73 

60 

46 

40 

36 

31 

37 

25 

22 

44 

43 

52 

88 

74 

62 

54 

44 

39 

34 

38 

27 

24 

43 

43 

50 

88 

69 

58 

48 

41 

37 

30 

33 

24 

21 

46 

45 

48Jk 

62 

53 

47 

42 

37 

34 

34 

34 

18 

15 

34 

34 

36 

66 

57 

50 

45 

40 

37 

37 

37 

19 

15 

37 

37 

38 

72 

62 

54 

49 

44 

37 

37 

37 

20 

16 

40 

40 

40 

104 

86 

70 

57 

47 

41 

35 

41 

31 

25 

51 

45 

58 

32 

27 

24 

21 

20 

19 

19 

19 

11 

9 

19 

19 

22 

78 

66 

54 

44 

37 

33 

28 

35 

24 

21 

42 

39 

44 

88 

69 

58 

48 

41 

37 

30 

33 

24 

21 

45 

48 

48;^ 

98 

84 

69 

59 

49 

44 

39 

41 

30 

26 

48 

48 

56 

101 

83 

68 

55 

46 

40 

33 

40 

30 

26 

50 

50 

56 

95 

78 

64 

48 

41 

37 

32 

39 

27 

24 

46 

46 

50 

89 

76 

67 

51 

45 

34 

20 

27 

20 

16 

41 

36 

32 

98 

80 

66 

53 

46 

38 

31 

38 

29 

25 

49' 

48 

64 

100 

84 

70 

54 

45 

38 

31 

42 

31 

26 

53 

37 

64 

100 

84 

74 

54 

47 

40 

29 

42 

31 

24 

54 

46 

54 

89 

76 

67 

51 

45 

34 

20 

27 

20 

16 

41 

36 

22 

85 

72 

58 

46 

39 

35 

30 

37 

25 

22 

44 

46 

46 

88 

69 

58 

48 

41 

37 

30 

33 

24 

21 

46 

48 

4Hh 

112 

94 

76 

66 

65 

48 

43 

43 

32 

27 

52 

54 

60 

118 

97 

82 

63 

52 

45 

33 

43 

33 

28 

69 

66 

68 

120 

100 

80 

69 

58 

51 

46 

45 

38 

31 

71 

64 

70 

72 

62 

54 

49 

44 

40 

40 

40 

21 

17 

40 

40 

42 

120 

100 

78 

69 

58 

53 

46 

48 

38 

24 

62 

61 

70 

79 

72 

55 

41 

37 

29 

20 

27 

20 

16 

32 

36 

32 

115 

103i 

82 

63i 

65 

44 

36 

43 

32 

27 

50 

584 

55 

79 

69 

68 

45 

42 

31 

20 

23 

16 

12 

39 

25 

24 

72 

62 

54 

49 

44 

38 

26 

33 

21 

19 

40 

40 

42 

84 

73 

64 

49 

43 

32 

20 

27 

20 

16 

39 

42 

32 

79 

69 

58 

45 

42 

31 

20 

23 

22 

16 

39 

27 

36 

76 

65 

56 

51 

46 

37 

26 

29 

23 

20 

42 

33 

46 

79 

69 

68 

45 

42 

31 

20 

23 

30 

28 

39 

19 

54 

79 

69 

68 

45 

42 

31 

20 

23 

16 

12 

39 

25 

24 

100 

86 

76 

55 

52 

42 

33 

39 

27 

22 

62 

53 

46 

100 

86 

76 

65 

52 

46 

334 

37 

25 

20 

62 

47 

42 

94 

83 

74 

50 

48 

37 

32 

40 

28 

23 

52 

64 

48 

•Governed  by  the  Southern  Classification. 
'Intermediate  points. 
'Per  barrel. 


Classification  and  by  exceptions  applicable  to  the  carriers 
within  the  state  of  Mississippi.    The  rates  of  the  several 


100       FREIGHT  RATES:    SOUTHERN  TERRITORY 

carriers  are  revised  and  approved  by  the  Eailroad  Com- 
mission of  Mississippi.  Tables  20  and  21  show  class 
rates  which  were  promulgated  by  the  Yazoo  &  Missis- 
sippi Valley  Railroad  and  approved  and  adopted  by  the 
Railroad  Commission  of  Mississippi.  Different  tariffs 
apply  over  the  lines  within  the  state,  but  the  rates  are 
usually  quite  similar.  The  rates  along  the  Mississippi 
River  are  somewhat  less  than  the  interior  rates. 

TABLE  20 

Local  Class  Rates  Applicable  Between  Stations  on  the 
Yazoo  &  Mississippi  Valley  Railroad  in  Mississippi 


Miles 


r, 

and  les 
and  ov 

g 

10 

er   5 

15 

10 

?0 

15 

?5 

20 

an 

25 

35 
40 

'   30 

35 

45 

40 

50 

75 

'   45 

70 

ino 

95 

130 

•  120 

150 
?00 

'  140 

'  190 

?50 

'  240 

300 

'  290 

Rates  in  Cents  per  100  Pounds  Except  as  Noted 


Classesi 

1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E   H   F2 

20 

17 

14 

12 

10 

9 

7 

8 

11 

6 

9  . 

.   18 

25 

21 

18 

15 

13 

11 

9 

10 

124 

6 

11   . 

.   20 

30 

25 

21 

18 

15 

13 

11 

12 

14 

7is 

13  . 

.   22 

33 

28 

24 

20 

17 

15 

12 

14 

15 

9 

15  . 

.   23 

36 

31 

26 

22 

19 

17 

13 

15 

16 

10 

17   . 

.   24 

39 

34 

28 

24 

21 

18 

14 

16 

16 

10 

18   . 

.   24 

42 

36 

30 

26 

22 

19 

15 

17 

17 

11 

20   . 

.   26 

45 

38 

32 

28 

23 

20 

16 

17 

17 

11 

21   . 

.   27 

48 

40 

34 

_29 

24 

21 

16 

18 

18 

11 

22   . 

.   28 

50 

42 

35 

30 

25 

22 

17 

19 

18 

11 

23   . 

.   29 

56 

47 

40 

35 

28 

25 

19 

21 

21 

14 

26   . 

.   34 

60 

52 

44 

37 

30 

27 

20 

23 

22i!t 

16 

28   . 

.   36 

64 

55 

46 

39 

32 

29 

22 

24 

23* 

174 

29   . 

.   38 

66 

57 

47 

40 

33 

30 

22 

25 

24 

174 

30   . 

.   39 

70 

60 

49 

42 

35 

31 

23 

26 

25ii 

20 

31   . 

.   41 

72 

61 

51 

43 

36 

32 

24 

27 

27 

21 

32   . 

.   44 

72 

61 

51 

43 

36 

32 

24 

27 

29 

23 

32   . 

.   46 

^Governed  by  the  Southern  Classification. 
'Per  barrel. 


6.    Louisiana 


The  state  of  Louisiana,  being  divided  by  the  Missis- 
sippi River,  is  rather  peculiar  in  its  control  of  freight 
rates.  The  part  of  the  state  lying  west  of  the  river  is 
governed  by  the  Western  Classification,  which  classifica- 
tion is  approved  by  the  Railroad  Commission  of  Louisi- 
ana. The  Southern  Classification  and  exceptions  thereto 
govern  the  shipments  moving  wholly  within  the  part  of 
Louisiana  lying  east  of  the  Mississippi  River.    The  state 


INTRASTATE  RATES  IN  SOUTHERN  TERRITORY  101 

TABLE  21 

Joint  Class  Rates  Applicable  Between  Stations  on  the 

Yazoo  &  Mississippi  Valley  Railroad  and  its 

Connections  in  Mississippi 


Miles 


5 

and 
and 

less. 
over 

10 

5 

15 

10 

20 

15 

25 

20 

35 

30 

40 

35 

45 

40 

50 

45 

75 

70 

100 

95 

130 

120 

150 

140 

200 

190 

250 

240 

300 

290 

Rates  in  Cents  per  100  Pounds  Except  as  Noted 


Classes' 

1   2 

3 

4 

5 

6 

A 

B 

C 

D 

E   H   F» 

18  15 

13 

11 

9 

8 

6 

7 

10 

5 

8  . 

.   16 

22J  19 

16 

13^ 

12 

10 

8 

9 

11 

5 

10  . 

.   18 

27  22J 

19 

16 

13^ 

12 

10 

11 

13 

7 

12   . 

.   20 

30  25 

22 

18 

15 

134 

11 

13 

134 

8 

134  . 

.   21 

32  28 

23 

20 

17 

15 

12 

134 

14 

9 

15   . 

.   22 

38  32 

27 

23 

20 

17 

13it 

16 

15 

10 

18  . 

.   224 

40i  34 

29 

25 

21 

18 

14 

15 

15 

10 

19  . 

.   23 

43  36 

31 

26 

22 

19 

14 

16 

16 

10 

20  . 

.   25 

44  37 

31 

26 

22 

20 

14 

16 

16 

10 

20  . 

.   254 

48  40 

34 

30 

24 

21 

16 

18 

18 

12 

22   . 

.   29 

51  44 

37 

31 

25i 

23 

17 

20 

19 

14 

24   . 

.  31 

53  46 

38 

32 

26 

24 

18 

20 

19 

14 

24   . 

.  31 

53  46 

38 

32 

26 

24 

18 

20 

19 

14 

24   . 

.  31 

56  48 

39 

34 

28 

25 

18 

21 

20 

16 

25   . 

.  33 

58  49 

41 

34 

29 

26 

19 

22 

22 

17 

26   . 

.  35 

58  49 

41 

34 

29 

26 

19 

22 

23 

18 

26   . 

.  37 

'Governed  by  the  Southern  Classification. 
2Per  barrel. 

does  not  prescribe  any  classification  of  its  own,  but 
approves  the  application  of  these  two  classifications  to 
the  two  sections  of  the  state.  The  commission  is  likewise 
vested  mth  the  control  over  the  water  carriers  operating 
within  the  state  and  prescribes  both  class  and  commodity 
rates  on  freight  shipped  between  points  on  the  Missis- 
sippi Eiver  by  boat.  The  commission,  however,  in  its  last 
report  (1914),  stated  as  follows: 

Steamboat  transportation  on  the  waterways  in  the  State  of 
Louisiana  continues  its  gradual  decline  and  has  become  of  such 
small  importance  that  it  may  be  said  to  be  disappearing,  except 
for  relatively  short  distances  on  only  a  few  of  the  navigable 
streams.  The  Commission  has  always  been  ready  to  grant 
every  opportunity  to  the  boats  to  increase  their  resources,  but 
the  traffic  has  not  increased,  and  the  indications  do  not  point 
to  any  improvement  in  the  immediate  future. 

In  so  far  as  rail  traffic  is  concerned,  the  commission 
revises  and  approves  all  tariffs  issued  by  the  rail  carriers 
naming  rates  for  the  transportation  of  freight  within  its 


102      FREIGHT  RATES:    SOUTHERN  TERRITORY 

borders.  Table  22  shows  the  class  rates  on  freight  mov- 
ing between  local  stations  on  the  New  Orleans  &  North- 
eastern Railroad  in  Louisiana,  Water  carriers  have 
their  rates  approved  in  the  same  manner. 

TABLE  22 

Distance  Rates  Applicable  on  the  New  Orleans  &  North- 
eastern Railroad  in  Louisiana 


MiLEB 

R. 

VTE8 

IN  Cents  per  100  Pounds  Except  as 

Noted 

1 

2 

3   4 

5 

Classes' 
6   A 

B 

c 

D 

e 

H   F" 

5 

20 
36 
48 
60 
64 

16 
30 
40 
60 
52 

14  12 
24  18 
32  24 
40  30 
42  32 

10 
15 
20 
25 

27 

7 
12 
15 
19 
21 

12 
15 
17 
20 
22 

13 
16 
20 
22 
24 

10 
14 
16 
17 
18 

7 
10 
12 
14 
15 

12 
20 
24 
26 
26 

14   20 

20 

24   28 

30 

32   32 

40 

35   34 

45 

35   36 

'Governed  by  the  Southern  Classification. 
*Per  barrel. 


CHAPTER   VIII 
rates  on  inland  waterways 

1.     Character  of  Service 

Having  now  set  forth  the  rail  rates  applicable  within 
the  several  states  comprising  Southern  Territory,  it  is 
well  to  consider,  before  passing  on  to  the  interstate 
adjustment,  some  of  the  rates  applicable  upon  the  more 
important  waterways  within  this  territory,  as  the  active 
or  potential  competition  of  the  water  routes  fixes  in  a 
great  measure  the  maximum  rates  which  the  rail  lines 
can  exact. 

Water  rates,  except  in  instances  where  the  operating 
companies  are  under  the  jurisdiction  of  the  Interstate 
Commerce  Commission,  are  not  stable.  For  this  reason, 
due  allowance  should  be  made  for  any  discrepancy  in 
the  rates  given  in  this  treatise  which  may  be  developed 
from  actual  experience  at  some  subsequent  time. 

At  the  present  time,  in  so  far  as  the  Interstate  Com- 
merce Commission  is  concerned,  the  water  lines  which 
are  operated  independently  of  any  railroad  ownership 
or  control,  or  which  do  not  publish  through  rates  in 
conjunction  with  rail  lines,  are  not  amenable  to  the  Act 
to  Regulate  Commerce  and  consequently  do  not  file  their 
tariffs;  neither  are  they  compelled  to  adhere  to  such 
rates  as  they  may  make  between  the  points  that  they 
serve. 

Where  the  traffic  is  heavy  and  where  the  difference 
between   the   rail   rate   and   the   water   rate   affords   a 

103 


104       FREIGHT  RATES :   SOUTHERN  TERRITORY 

sufficient  justification  for  the  use  of  tlie  water  routes, 
the  common  carrier  business  by  water  frequently  offers 
a  remunerative  return  on  an  investment ;  the  established 
lines  are  therefore  often  troubled  with  the  competition 
of  what  they  term  ''tramp  boats"  and  ''charter  traffic." 
As  a  result,  there  are  frequent  rate  wars  terminating 
either  in  the  failure  and  retiring  of  one  of  the  contestants, 
or  in  mutual  concessions  on  the  part  of  the  belligerents. 
These  concessions  usually  result  in  an  agreement  as  to 
what  rates  are  to  be  maintained;  frequently  they  bring 
about  a  division  of  the  traffic,  which  is  in  effect  the  elim- 
ination of  competition. 

Many  primitive  means  of  transportation  are  still 
employed  upon  these  waterways,  which  in  a  measure 
depress  not  only  the  rail  rates,  but  those  of  the  boat  lines 
as  well.  Logs,  for  example,  are  still  cut  near  the  head 
waters  of  these  streams  and  are  branded  and  floated 
down  the  river  to  some  concentrating  point,  where  they 
are  made  up  into  rafts  and  floated  down  the  river  to 
some  milling  point.  Again,  small  boats  of  the  gasoline 
type  and  flat  boats  are  operated  in  a  limited  field,  their 
owners  doing  a  trading  business  as  well  as  a  carrjdng 
business,  which  interferes  with  the  operation  of  the  estab- 
lished water  lines. 

2.     Ohio  Riveb 

From  the  statistics  dealing  with  the  tonnage  moving 
on  the  different  rivers  in  this  territory,  it  will  be  noted 
that  by  far  the  greatest  per  cent  thereof  is  on  the  Ohio 
River,  which  is  navigable  its  entire  length  from  Pitts- 
burgh, Pa.,  to  its  mouth,  below  Cairo,  a  distance  of  some 
967  miles. 

The  greater  part  of  the  tonnage  referred  to  consists, 
however,  of  coal  which  moves  from  the  western  Penn- 
sylvania and  West  Virginia  regions.     This  commodity 


RATES  ON  INLAND  WATERWAYS  105 

is  very  economically  handled  by  being  loaded  into  open 
barges  which  have  a  capacity  equivalent  to  fifteen  or 
twenty  ordinary  coal  cars.  As  twenty  or  more  of  these 
barges  are  easily  handled  by  the  ordinary  tow  boat, 
which  is  operated  at  a  slight  expense  per  day,  the  advan- 
tage of  this  means  of  transportation  is  readily  appreci- 
ated. In  fact,  bituminous  coal  may  be  purchased  on  the 
barge  at  Cincinnati  at  a  cost  not  greatly  in  excess  of 
one  dollar  per  ton.  The  cost  of  unloading  the  coal  varies 
with  the  means  employed  and  the  distance  necessary  to 
remove  it  from  the  barge.  The  lines  engaged  in  this 
traffic,  however,  do  not  handle  other  traffic  except  in 
special  cases,  for  they  do  not  hold  themselves  out  as  com- 
mon carriers,  but  are  operated  solely  in  the  interests  of 
marketing  coal  for  their  owners. 

The  principal  water  lines  engaging  in  a  common 
carrier  business  on  the  Ohio  Eiver  are :  The  Green  Line, 
operating  to  the  landings  on  the  Ohio  River  above 
Cincinnati;  the  Louisville  and  Cincinnati  Packet  Com- 
pany, serving  all  way  points  between  Cincinnati  and 
Louisville;  and  the  Lee  Line  Steamers,  serving  all  river 
landings  on  the  Ohio  River  below  Louisville  and  on  the 
Mississippi  River  between  Memphis,  Tenn.,  and  St. 
Louis,  Mo. 

Representative  rates  via  some  of  these  routes  are  as 
follows : 

Classes 1     2    3    4    5"6 

Rates  between  Louisville,  Ky.,  and  Owensboro,  Ky.  26  22  18  12  10  8 
Rates  between  Louisville,  Ky.,  and  Evansville,  Ind.  26  22  18  12  10  8 
Rates  between  Louisville,  Ky.,  and  Cincinnati,  Ohio.  2.5  22  17  12  9  8 
Rates  between  Evansville,  Ind.,  and  Owensboro,  Ky.  18  15  13  10    9  8 

The  above  rates  are  governed  by  the  Official  Classifi- 
cation, while  the  following  are  governed  by  the  Western. 

Classes 12345ABCDE 

Rates  from  Louisville,   Ky.,   to 

Memphis,  Tenn 53  41  38  30  24  23  20  15  12  10 


106       FREIGHT  RATES :   SOUTHERN  TERRITORY 
3.     Geeen  and  Barren  Rivers 

The  Green  River,  together  with  the  Barren  River, 
forms  a  body  of  water  navigable  for  a  distance  of  227 
miles.  There  are,  aside  from  Bowling  Green,  Ky.,  which 
has  a  population  somewhat  in  excess  of  9,000,  few  points 
of  any  traffic  importance  and,  as  may  be  inferred,  there 
is  not  a  great  deal  of  traffic  involved  in  this  instance. 

The  Evansville  &  Bowling  Green  Packet  Company 
affords  a  semi-weekly  service  between  Evansville  and 
Bowhng  Green  and  a  weekly  service  between  Evansville 
and  Mammoth  Cave,  located  on  the  head  waters  of  the 
Green  River. 

The  tariff  of  this  company  which  names  the  rates 
between  the  termini  and  the  intermediate  points  is  pub- 
lished rather  in  the  form  of  an  exception  sheet,  inasmuch 
as  certain  specific  articles  are  singled  out  and  given  in- 
dividual rates,  while  articles  not  classified  are  taken  at 
the  ratings  provided  for  general  merchandise,  which 
term  includes  all  articles  that  are  not  specifically  rated. 

The  freight  rates  between  Evansville,  Ind.,  and 
Bowling  Green,  Ky.,  include  delivery  to  the  consignee's 
warehouses,  stores,  etc.,  which  are  located  within  the 
recognized  municipal  limits  of  Bowling  Green,  of  all 
commodities  except  furniture,  corn,  wheat,  and  woven 
wire  fencing,  on  which  the  rates  apply  to  the  Bowling 
Green  landing  only.  The  general  merchandise  rate  be- 
tween Evansville,  Ind.,  and  Bowling  Green,  Ky.,  is  20 
cents  per  100  pounds.  We  find  such  connnodities  as 
apples  rated  at  25  cents  per  barrel ;  ale  and  beer,  20  cents 
per  keg;  large  boilers,  25  cents  per  100  pounds;  bran  and 
feed  in  sacks,  12i/^  cents  per  100  pounds ;  common  brick, 
$5  per  M;  brooms,  10  cents  per  dozen;  empty  cases  re- 
turned, 8Y2  cents  each ;  corn,  wheat,  and  rye,  7  cents  per 
100  pounds ;  organs  and  pianos,  boxed,  50  cents  per  100 


RATES  ON  INLAND  WATERWAYS 


107 


pounds ;  empty  trunks,  40  cents  per  100  -pounds ;  passen- 
ger vehicles,  K.  D.,  boxed  and  crated,  40  cents  per  100 
pounds;  wooden  and  willow  ware,  35  cents  per  100 
pounds;  and  wire  fencing  in  rolls,  15  cents  per  100 
pounds. 

In  Table  23  are  given  some  representative  commodity 
and  general  merchandise  rates  applicable  between 
Evansville,  Ind.,  and  Mammoth  Cave,  Ky. 

TABLE  23 

Freight  Rates  Applicable  Between  Evansville,  Ind.,  and 

Mammoth  Cave,  Ky. 


Commodity 


Rate  in  Cents 


C.  L. 


General  merchandise 

Agricultural  implements,  L. 

Boots  and  shoes,  in  boxes 

Brooms,  in  boxes,  bundles,  or  crates 

Cement,  Portland,  in  bbls.,  400  lbs.  per  bbl. 
Chairs,  rocking,  cane  seat,  without  arms .  .  . 

Coal 

Eggs,  30  doz.  cases 

Axe  handle  timber 

Bananas,  in  bunches,  sacked,  or  crated .... 

Grapes,  in  baskets 

Watermelons 

Live  stock,  viz.,  cattle 

Calves,  not  exceeding  350  pounds 

Horses  and  mules 

Hogs 

Mattresses,  in  bales,  5  or  6  per  bale 

Show  cases,  in  boxes  or  crates 


40 

45 

45 

17 

45 

85 

10 

30 

400 

30 

8 

8 

150 

135 

75 

400 

300 

40 


per  cwt. 

((    (( 

per  doz. 
per  bbl. 
per  doz. 
per  bu. 
per  case 
per  cord 
per  bunch 
per  basket 
each 
per  head 


per  bale 

per  Unear  foot 


From  Table  23  it  will  be  noted  that  these  rates  are 
prescribed  in  every  conceivable  manner  and  are  not  on 
a  uniform  basis  of  100  pounds,  as  is  the  case  with  the 
rail  rates. 

4.     Mississippi  River 

In  so  far  as  traffic  on  the  Mississippi  River  is  con- 
cerned, the  following  facts  gleaned  from  the  opinion  of 
the  Interstate  Commerce  Commission  with  reference  to 
the  petitions  of  the  carriers  in  Southern  Territory  to 


108       FREIGHT  RATES :   SOUTHERN  TERRITORY 

violate  the  fourth  section  of  the  Act  to  Regulate  Com- 
merce are  especially  relevant.^ 

The  first  steamboat  (The  New  Orleans)  that  operated  on  the 
Mississippi  River,  left  Pittsburgh,  October  20,  1811,  and  reached 
New  Orleans  early  in  January,  1812.  Not  until  May,  1815,  had 
any  steamboat  succeeded  in  ascending  the  river  as  far  as  the 
falls  of  the  Ohio  at  Louisville.  By  the  end  of  the  year  1819, 
however,  60  steamboats  had  been  built  to  operate  on  the  Ohio 
and  Mississippi  rivers.  During  the  period  1820  to  1830  the  most 
important  points  in  the  steamboat  trade  were  Louisville,  Ky., 
Nashville,  Tenn.,  Vicksburg  and  Natchez,  Miss.,  and  New 
Orleans  and  Bayou  La  Fourche,  La.  *  *  *  During  the 
season  ending  August  31,  1860,  the  total  commerce  on  the  river 
reached  the  enormous  value  of  $289,565,000.  The  arrivals  of 
boats  at  New  Orleans  that  year  were  4,002,  of  which  605  came 
from  the  upper  Atlantic  coast,  180  from  the  lower  Atlantic 
coast,  12  from  Peoria,  111.,  206  from  Cincinnati,  172  from  Louis- 
ville, 8  from  Evansville,  Ind.,  108  from  Greenville  and  Bends, 
Miss.,  110  from  Memphis,  526  from  Pittsburgh,  4  from  Paducah, 
472  from  St.  Louis,  211  from  Vicksburg,  and  the  remainder  from 
the  various  tributaries  of  the  Mississippi  River. 

During  the  years  from  1861  to  1865  the  commerce  of  the 
Mississippi  River  was  interrupted  by  the  war.  *  *  *  in 
order  to  profitably  employ  the  large  number  of  steamboats  in 
the  Mississippi  River  at  the  close  of  the  Civil  War,  the  Atlantic 
&  Mississippi  Steamship  Company  was  organized  with  a  capital 
of  $2,240,000.  It  owned  about  20  boats,  some  of  which  were 
the  finest  then  afloat.  This  company  failed  after  two  or  three 
years  and  was  succeeded  by  the  St.  Louis  &  New  Orleans  Packet 
Company,  which  later  was  organized  as  the  Merchants  Southern 
Line  Packet  Company.  The  latter  named  company  was  suc- 
ceeded by  the  Anchor  line,  which  covered  the  entire  territory 
from  St.  Louis  to  New  Orleans  and  operated  for  a  number  of 
years.  During  the  period  1874  to  1896  this  company  operated 
regularly  from  12  to  14  steamers.  The  usual  service  afforded 
by  it  was  2  boats  per  week  between  St.  Louis  and  New  Orleans, 
and  3  boats  per  week  between  St.  Louis  and  Vicksburg. 

A  statement  of  tonnage  moving  by  water  between 
St.  Louis  and  New  Orleans  indicates,  in  so  far  as  south- 
bound traffic  to  New  Orleans  is  concerned,  that  from 
a  maximum  of  627,627  tons  in  1880  the  tonnage  had 
dwindled  to  3,175  tons  in  1904. 

130  I.  C.  C.  Rep.,  226. 


RATES  ON  INLAND  WATERWAYS  109 

While  these  statements  show  during  the  years  subsequent  to 
1901  a  constantly  dwindling  river  traffic,  they  show  that,  for 
a  period  prior  to  that  date,  this  traffic  was  large  and  important 
in  amount,  and  evidently  worth  fighting  for. 

Below  is  shown  a  chronological  statement  of  the  rates  on 
the  first  six  classes  from  Louisville  to  New  Orleans,  1879  to  date: 


Date 

1 

2 

3 

4 

5 

6 

Nov.  24,  1879 

105 

75 

65 

45 

35 

30 

Sept.  28,  1880 

107 

77 

67 

45 

35 

30 

Nov.  5,  1883 

100 

77 

65 

45 

35 

30 

Jan.  7,  1884 

98 

77 

63 

40 

35 

30 

Feb.  1,  1884 

75 

65 

55 

40 

35 

30 

Aug.  1,  1887 

90 

75 

65 

50 

40 

35 

These  rates,  established  August  1,  1887,  have  been  continued 
in  effect  from  that  date  and  are  the  present  rates. 

The  rates  applicable  via  the  water  lines  from  St.  Louis, 
East  St.  Louis,  and  Cape  Girardeau  to  New  Orleans  and 
other  points  on  the  lower  Mississippi  River  are  shown  as 
follows : 

Classes 123456ABCDEHF 

Rates  to  Memphis ..  .      50     40     35     25     20     18     10     19     10       8     15     32     20 
Rates  to  New  Orleans     60     50     45     35     30     25     18     20     18     16     20     40     35 

These  classes  are  applicable  in  connection  with  the 
Mississippi  Valley  Transportation  Company  and  are 
governed  by  the  Southern  Classification. 

*  *  *  It  is  evident  from  the  tonnage  statistics  relative 
to  the  actual  movement  of  freight  from  St.  Louis  to  New  Orleans 
that  this  tonnage  by  water  did  not  materially  decrease  until 
about  the  year  1898,  11  years  after  the  establishment  of  the 
present  scale  of  rail  rates.  At  the  time  this  testimony  relative 
to  the  rates  in  the  Mississippi  Valley  was  taken  (June,  1912) 
there  were  no  regular  boat  hnes  in  operation  from  Ohio  River 
points  or  St.  Louis  to  New  Orleans.  Regular  service  of  this 
character  had  not  been  furnished  for  some  years.  *  *  ♦ 
There  is  reason  for  believing  that  the  rates  to  New  Orleans, 
when  established  by  the  rail  lines  in  1887  and  since  maintained, 
were  necessitated  by  an  active  compelling  water  competition. 
Without  doubt  the  changing  demands  of  commerce,  the  in- 
creased facilities  of  the  railroads,  their  better  organization  and 


110       FREIGHT  RATES :   SOUTHERN  TERRITORY 

regularity  of  service  have  been  influential  in  winning  for  them 
not  only  a  share  of  the  traffic  but  nearly  all  of  the  traffic.  The 
water  competition,  once  actual  and  compelling,  is  still,  however, 
potential,  and  it  is  most  earnestly  contended  by  the  petitioners 
herein  that  any  substantial  increase  in  the  rates  to  New  Orleans 
will  have  the  effect  of  reestablishing  the  water  competition, 
with  consequent  loss  of  traffic  and  revenue  to  the  rail  lines.  ♦  ♦  *' 

A  slight  difference  in  the  rates  would  hardly  justify 
the  patronage  of  a  water  line  when  a  rail  rate  was  avail- 
able, for  in  practically  all  of  the  river  cities  levees  of 
various  widths,  heights,  and  lengths  have  to  be  con- 
structed to  protect  the  city  and  to  provide  a  solid  founda- 
tion for  the  accommodation  of  wheel  traffic.  A  varying 
oscillation^  in  the  river  stage  at  various  points  on  the 
river  prohibits  the  construction  of  vertical  wharves  such 
as  are  employed  at  the  seaboard  and  the  Great  Lakes, 
where  vessels  discharge  their  cargoes  almost  on  the 
street  level.  The  gradient^  of  some  of  these  levees  is 
extreme  and  in  some  cases  five  or  six  blocks  in  length. 
Deliveries  are  usually  effected  to  or  by  the  steamers 
through  a  wharf  boat,  which  is  moored  to  the  river  bank 
and  connected  with  the  shore  by  gangways  over  which 
teams  or  trucks  may  pass  to  receive  or  deliver  ship- 
ments. The  position  of  the  wharf  boat  is  changed  in 
accordance  with  the  stage  of  the  water.  Under  these 
circumstances,  it  is  obvious  that  the  expense  and  risk 
attending  the  drayage  of  freight  to  such  receiving  sta- 
tions are  greatly  in  excess  of  the  expense  and  risk 
involved  in  effecting  a  delivery  to  a  railroad  warehouse, 
which  is  a  comparatively  level  haul. 

Several  companies  have  recently  been  formed,  one  at 
New  Orleans,  another  at  St.  Louis,  and  another  at 
Chicago,  to  revive  traffic  upon  the  Mississippi  River,  and 

*30  I.  C.  C.  Rep.,  229. 

•Backward  and  forward  movement. 

*Slope  or  incline. 


RATES  ON  INLAND  WATERWAYS  111 

if  the  movement  is  supported  to  an  extent  sufficient  to 
justify  it,  it  may  be  that  some  more  economical  method 
may  be  devised  for  the  gathering  and  distribution  of  the 
cargoes  of  the  river  packets. 

The  rates  applicable  from  Memphis,  Tenn.,  to  some 
other  points  and  landings  on  the  Mississippi  River,  in 
connection  with  the  Arkansas  Packet  Company,  are  as 
follows : 

Classes 1       2      3      4      5      6 

Rates  from  Memphis,  Tenn.,  to  Helena, 

Ark 30     25     20     16     14     11 

Rates  from  Memphis,  Tenn.,  to  PViar's 

Point,  Miss 30     27^  22M7M5     12 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 

The  rates  set  forth  in  Table  23-A,  applying  between 
New  Orleans,  La.,  and  landings  in  Louisiana,  are  gov- 
erned by  the  A¥estern  Classification. 

5.     Tennessee  Eiver 

This  river  is  navigable  for  a  distance  of  over  six 
hundred  miles,  from  Paducah,  Ky.,  to  Chattanooga, 
Tenn.,  and  beyond.  In  addition  to  several  lines  operating 
locally  upon  this  stream,  through  service  is  afforded 
from  St.  Louis,  Mo.,  and  Cairo,  111.,  by  the  St.  Louis  & 
Tennessee  River  Packet  Company. 

Rates  applicable  from  Paducah,  Ky.,  to  all  landings 
upon  this  river  to  and  including  Perry ville,  Tenn.,  are 
as  follows : 

Classes 12  3  4  5  6 

Rates 50        40        35        30        25         16 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 


112       FREIGHT  RATES  :   SOUTHERN  TERRITORY 


TABLE  23- A 

Boat  Rates  Applying  on  Classes  via  the  Mississippi  River 

ON  THE  Stretch  Between  New  Orleans  and  the 

Northern  Boundary  of  Louisiana^ 


Rates  in  Cents  per  100  Pounds 

Between  New  Orleans  and  Inter- 
mediate Landings 

L.  C.  L.                    C.  L. 

AND 

Classes^ 

12     3     4     5 

ABODE 

The  more  important  landings  between 
New  Orleans  and  Donaldsonville,  La. 

The  less  important  landings  between  New 
Orleans  and  Donaldsonville,  La 

Landings  between  Donaldsonville,  Baton 
Rouge,  Port  Allen,'  and  Bayou  Sara, 
proper 

30  25  23  15  20 
30  26  23  20  15 

30  26  23  20  15 
45  40  35  30  25 

50  45  35  30  25 

20  15  12  10  10 
15  12  12  10    8 

15  12  12  10    8 

Poplar  Grove,  Lobdell,  Devalls,     Hills, 
and  False  River  Railroad^ 

25  18  16  14  12 

Landings    above    Bayou    Sara   but    not 
above     the     northern     boundary     of 
Louisiana,  and  including  Natchez  and 
Vicksburg,  Miss 

25  20  18  16  15 

'Railroad  Commission  of  Louisiana,  Authorities  Nos.  5148,  3178,  3180, 
and  3421.  Where  commodity  rates  are  higher,  they  are  applied.  No  freight 
bill  made  for  less  than  25  cents;  no  landing  made  for  less  than  50  cents.  The 
Railroad  Commission  of  Louisiana  has  authority  over  intrastate  shipments 
only,  but  the  boat  lines  apply  the  rates  at  landings  on  the  Mississippi  side  as 
far  as  the  northern  boundary  of  Louisiana. 

^Governed  by  the  Western  Classification. 

'These  landings  are  between  Baton  Rouge  and  Bayou  Sara. 


6.     Cumberland  River 


From  Evansville,  Ind.,  and  Paducah,  Ky.,  to  Nashville 
and  Clarksville,  Tenn.,  the  rates  of  the  Cumberland 
River  Steamboat  Company  are  not  specified  under  the 
ordinary  class  headings,  but  specific  rates  are  given  for 
various  commodities. 

Commodity  Rate  in  Cents 

Apples,  per  barrel 22 

Oil,  molasses,  or  whiskey,  in  barrels,  L.  C.  L.  .  11 

Bacon 16^ 

Boots  and  shoes,  boxed 33 


RATES  ON  INLAND  WATERWAYS  113 

Commodity  Rate  in  Cents 

Canned  goods 22 

Cement,  in  bags 11 

Cement,  in  barrels 273^^ 

Coffee 22 

Dry  goods 273^ 

Flour,  per  barrel 22 

Groceries,  packed,  N.  O.  S 22 

Household  goods,  prepaid 44 

Molasses,  syrup,  and  glucose,  per  barrel 110 

Nails 131^ 

Vehicles,  viz.,  buggies  and  carriages,  K.  D .  .  .  44 

7.     Alabama  River 

As  before  stated,  while  the  water  carriers  are  exempted 
from  the  provisions  of  the  Act  to  Regulate  Commerce 
so  far  as  interstate  traffic  is  concerned,  many  of  the 
states  have  included  them  among  the  other  public  utilities 
that  are  subject  to  the  control  or  regulation  of  the  state 
commissions.  As  will  be  explained  in  a  subsequent 
chapter,  many  of  these  states  prescribe  maximum  rates 
which  must  be  observed  by  the  carriers  upon  traffic 
moving  within  those  states.  In  this  instance,  the  rates 
of  the  boat  lines  on  the  Alabama  and  Tombigbee  rivers 
between  Mobile,  Ala.,  on  the  one  hand  and  Montgomery, 
Selma,  and  Demopolis,  Ala.,  on  the  other,  are  fixed  by 
the  Alabama  Railroad  Commission  upon  the  following 
scale : 


Classes . 

.     1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F 

Rates.  .  . 

,   30 

20 

20 

18 

12 

10 

9 

8 

10 

7 

6 

18 

19 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 

8.       CoOSA  RiVEB 

The  follo\\dng  are  representative  commodity  rates 
applied  from  Rome,  Ga.,  to  Round  Mountain,  Ala.,  by  the 
Oostanaula  and  Coosa  River  Steamboat  Company. 


114       FREIGHT  RATES  :   SOUTHERN  TERRITORY 

Commodity  Rate  in  Cents 

Axes,  packed,  L.  C.  L 15 

Axle  grease,  L.  C.  L 15 

Bacon,  in  sacks  or  packed  in  bbls.  or  hhds.  .  .  15 

Bagging,  jute 12}/^ 

Barrels,  half-barrels,  and  kegs,  L.  C.  L 30 

Beans,  dried,  in  barrels  or  sacks,  L.  C.  L .  .  .  .  15 

Blacking,  packed  in  barrels  or  boxes 15 

Books 30 

Boots  and  shoes,  boxed 30 

Brooms,  L.  C.  L 30 

Buckets,  wooden,  L.  C.  L 30 

Candy  and  confectionery,  packed 30 

Canned  goods,  L.  C.  L.,  packed 15 

Carpets,  matting,  and  rugs 30 

Cheese,  in  boxes,  casks,  or  cheese  hoops 15 

9.     Chattahoochee  River 


The  Merchants  &  Planters  Steamboat  Company  oper- 
ates four  steamers  with  two  sailings  per  week  between 
Columbus,  Ga.,  and  Apalachicola,  Fla.  These  boats, 
in  connection  with  the  boats  on  the  Gulf-  of  Mexico,  fur- 
nish an  all-Avater  route  from  Columbus  to  New  Orleans, 
Mobile,  and  Pensacola.  The  number  of  arrivals  of  boats 
at  Columbus  is  shown  to  have  been  84  in  the  year  1863 ; 
231  in  1885;  203  in  1890;  141  in  1895;  and  201  in  1899. 
During  the  last  forty-seven  years  the  average  yearly 
arrival  of  boats  has  been  129,  but  few  tonnage  statistics 
relative  to  the  traffic  handled  by  these  boats  are  avail- 
able. It  is  shown  that  in  1906  the  boats  handled  7,233 
tons  in  and  out  of  Columbus.  During  March,  1910,  the 
boats  delivered  at  Columbus  204,720  pounds  of  freight; 
during  April,  249,235  pounds;  and  during  May,  440,200 
pounds.  This  tonnage  came,  for  the  most  part,  from  New 
Orleans,  Chicago,  Cairo,  St.  Louis,  and  Pensacola,  and 
consisted  of  foodstuffs  and  merchandise  of  almost  every 
description.     Only  a  small  amount  of  freight  comes  by 


RATES  ON  INLAND  WATERWAYS  115 

boat  to  Columbus  from  the  Eastern  Cities,  but  there  is  a 
possible  all-water  route  via  the  Mallory  Line  from  Mobile 
and  via  steamboat  lines  from  Mobile  to  Columbus.^ 

Eufaula,  Ala.,  is  another  important  point  on  this  river, 
but  at  the  present  time  there  are  no  figures  available  as 
to  what  the  charges  are  between  the  terminals  of  this 
route. 

10.     Flint  River 

Although  up  to  the  twentieth  of  June,  1911,  the  United 
States  Government  had  expended  $278,500  in  improving 
the  navigation  of  the  Flint  River,  the  competition  of  the 
water  carriers  of  this  river  must  still  be  regarded  as 
largely  potential.  Such  service  as  there  is,  is  afforded  by 
small  boats  of  light  draft.  Although  Albany,  Ga.,  is 
located  on  this  stream  and  is  a  distributing  point  of  no 
little  importance,  there  is  an  absence  of  authentic  figures 
relative  to  the  tonnage  moving  on  this  river. 

11.     Savannah  Rivee 

The  two  established  lines  navigating  this  river  are 
known  as  the  Merchants  &  Farmers  Navigation  Company 
and  the  Augusta  &  Savannah  Steamboat  Company.  The 
most  important  point  aside  from  Savannah  located  on 
this  river  is  Augusta,  which  was  founded  in  1735.  Long 
before  the  construction  of  railroads,  Augusta  was  an 
important  distributing  point,  merchandise  reaching  it 
by  means  of  boats  on  the  Savannah  River  and  from 
Charleston  by  means  of  wagons  and  teams.  Upon  the 
completion  in  1833  of  the  old  South  Carolina  Railroad, 
which  was  financed  largely  by  merchants  of  Charleston, 
Augusta  was  linked  with  Charleston.  It  is  significant  to 
note  that  the  management  of  this  railroad,  soon  after  its 

•30  I.  C.  C.  Rep.,  153. 


116       FREIGHT  RATES :   SOUTHERN  TERRITORY 

construction,  established  lower  rates  from  Charleston 
to  Augusta  than  it  did  to  intermediate  points  and  thus 
brought  about  a  violation  of  the  long-and-short-haul 
clause  which  has  continued  from  that  day  to  this. 

The  Savannah  River  is  navigable  during  the  entire 
year.  The  boat  service  is  regular  and  has  continued  for 
nearly  one  hundred  years.  The  United  States  Govern- 
ment has  spent  large  sums  of  money  for  the  improvement 
of  this  river,  $350,000  being  appropriated  for  that  pur- 
pose during  the  year  1912.  It  has  been  developed  that 
nearly  all  the  sugar,  cotton  ties,  bagging,  cement,  iron 
and  steel  articles,  canned  goods,  and  other  heavy  com- 
modities move  into  Augusta  by  way  of  the  river  and  that 
the  rail  lines  participate  very  little  in  this  traffic.  The 
boat  lines  likewise  handle  the  bulk  of  the  outgoing  prod- 
ucts, consisting  largely  of  cotton  goods,  to  the  Eastern 
Cities.® 

12.     Altamaha  River 

The  Macon  &  Brunswick  Navigation  Company,  which 
up  to  1909  operated  on  the  Altamaha  and  Ocmulgee 
rivers,  discontinued  its  service.  Subsequently,  however, 
the  service  was  resumed  on  a  somewhat  smaller  scale 
than  was  formerly  maintained.  It  is  stated  that  the 
tonnage  handled  by  the  railroads  in  and  out  of  Macon 
during  the  year  1910  was  2,000,000  tons,  six  per  cent  of 
which  was  handled  to  and  from  the  coast.  It  is  estimated 
that  one-third  of  this  traffic  to  and  from  the  coast  could 
have  been  advantageously  transported  by  boat  if  naviga- 
tion had  permitted  and  the  boats  were  in  operation. 

These  illustrations  will  suffice  to  show  the  important 
part  that  these  inland  waterways  play  in  the  distribution 
of  the  commerce  of  the  South. 

«30  I.  C.  C.  Rep.,  153. 


RATES  ON  INLAND  WATERWAYS  117 

13.    Insubancb 

Another  feature  that  should  not  be  lost  sight  of  in 
connection  with  water  transportation  is  the  requirement 
for  the  insurance  of  property  transported  by  river  car- 
riers. It  is  commonly  known  as  marine  insurance.  This 
charge,  being  in  addition  to  the  freight  rates  in  a  great 
many  instances,  lessens  the  difference  between  the  rail 
rates  and  the  water  rates.  The  following  are  the  insur- 
ance rates  on  river  cargo  in  effect  in  1910.  The  rates 
given  are  those  on  $100  in  value  of  cargo  carried  by  good 
steamboats  and  barges  to  and  from  New  Orleans  and  the 
following  points.'^ 

INSURANCE  RATES  PER  $100  VALUE  APPLYING  ON  CARGO 
SHIPPED  ON  THE   ILLINOIS  AND 
MISSISSIPPI  RIVERS 

BETWEEN  AND  RATE 

St.  Louis  Cairo  $0.40 

St.  Louis  Memphis  .50 

St.  Louis  Vicksburg  .70 

St.  Louis  Natchez  .75 

St.  Louis  New  Orleans  .  80 

Cairo  Memphis  .  40 

Cairo  Vicksburg  .50 

Cairo  Natchez  .55 

Cairo  New  Orleans  .  65 

LaSalle,  111.  New  Orleans  1 .  10 

St.  Paul,  Minn.  New  Orleans 1.50 

Special  rates  are  charged  on  cotton  seed  as  follows: 
By  model  barges  from  any  point  to  New  Or- 
leans the  rate  is 85 

By  scow  barges  from  any  point  on  the  Mississippi 

to  New  Orleans 1.50 

By  scow  barges  from  any  point  on  the  tributaries 

of  the  Mississippi  River  to  New  Orleans 2.00 

Harbor  risks  on  cargo  in  model  barges  holding  underwriters' 
inspectors'  certificate  are  taken  at  a  rate  of  $2.50  per  $100  in 
value.  Hull  risks  on  approved  vessels  are  taken  at  from  6  to 
16  per  cent  per  annum  on  the  value  of  the  vessel.  The  Lee  Line 
pays  13  per  cent  on  its  fleet.  This  is  probably  near  an  average 
insurance  rate  for  approved  wooden  hulls  on  the  Mississippi 
River. 

'Shelton,  W.  A.,  The  Lakes-to-the-Oulf  Deep  Waterway. 


118       FREIGHT  RATES :   SOUTHERN  TERRITORY 

There  is  a  large  list  of  freight  on  which  the  insurance 
alone  prevents  the  shipment  by  river.  A  large  part  of 
the  common  stock  of  dry  goods,  for  example,  is  valued 
at  $50  or  more  per  100  pounds,  and  the  insurance  between 
St.  Louis  and  New  Orleans  at  this  value  is  40  cents.  The 
finer  lingeries  and  silks  are  valued  at  as  much  as  $1,000 
per  100  pounds,  on  which  the  insurance  rate  is  $8  per  100 
pounds.  The  rail  rate  on  silks  of  this  value  is  only  $2.70 
from  New  York  to  St.  Louis,  and  on  the  cheaper  grades 
of  silks  the  rate  is  only  90  cents. 

In  cases  involving  a  water  haul,  it  is  always  desirable 
to  ascertain  whether  the  rate  covering  the  water  or  the 
joint  rail-and-water  haul  includes  this  item,  as  in  some 
cases  the  steamboat  companies  assume  this  risk  them- 
selves and  insure  the  property  under  their  open  policy. 
Considering  the  hazards  of  navigation,  such  as  stranding, 
sinking  of  the  vessel  by  striking  hidden  snags  or  other 
obstruction  or  change  in  the  river  channels,  the  burning 
of  the  vessel,  the  risk  of  damage  from  water,  etc.,  goods 
of  value  should  never  be  shipped  unless  insured. 


CHAPTER  IX 
interstate  rates  via  coastivise  routes 

1.     Character  of  Service 

To  enter  into  a  detailed  description  of  the  many 
thousands  of  separate  but  interdependent  bases  of  rate 
construction  under  which  the  whole  of  the  southern  rate 
fabric  has  been  constructed,  and  under  which  changes 
in  rates  are  constantly  being  made,  would  produce  a 
volume  of  matter  far  beyond  the  scope  of  this  treatise. 
All  that  may  be  undertaken,  therefore,  is  to  describe  and 
exemplify  more  or  less  in  outline  the  principal  features 
of  the  relative  adjustments  that  obtained  between  the 
points  of  origin  on  the  one  hand  and  the  points  of  des- 
tination on  the  other.  A  discussion  of  these  adjustments 
will  prove  sufficient  to  give  a  clear  understanding  of  the 
old  situation. 

As  the  rates  on  interstate  traffic  are,  to  a  great  extent, 
compelled  by  the  rates  established  from  eastern  markets 
and  reflect  the  effect  of  the  direct  water  competition  be- 
tAveen  the  North  and  the  South  Atlantic  ports,  it  is  neces- 
sary, before  taking  up  any  of  the  interior  adjustments, 
to  make  some  statement  as  to  the  service  and  rates 
afforded  between  the  more  important  ports. 

It  should  be  understood  that  while  many  of  these  water 
lines  are  controlled  by  railroad  interests,  and  publish 
joint  rates  to  inland  points,  which  are  subject  to  revision 
by  the  Interstate  Commerce  Commission,  their  all-water 

119 


120       FREIGHT  RATES :   SOUTHERN  TERRITORY 

rates,  or  dock-to-dock  rates,  as  they  are  styled,  do  not 
come  within  the  jurisdiction  of  the  Commission  and  are 
not  filed  vdih.  that  body.  Consequently,  as  a  rule  no 
shipments  of  great  volume  are  handled  on  the  basis  of 
published  rates.  Where  cargoes  are  offered  in  large 
quantities,  the  schedules  are  often  disregarded. 

In  addition  to  the  freight  carried  hy  the  regular  steam- 
ship companies,  or  established  lines,  much  of  the  low- 
grade  bulk  traffic  moving  into  and  out  of  the  South 
Atlantic  Ports  is  handled  by  vessels  belonging  to  lumber 
companies  and  by  tramp  steamers.  These  steamers  move 
loaded  into  or  out  of  the  ports  and  return  empty  except 
for  such  traffic  as  may  be  picked  up.  Considerable  ton- 
nage is  handled  by  sailing  vessels.  Cement,  coal,  lumber, 
and  fertilizer  materials  move  to  the  South  Atlantic  Ports 
in  large  quantities  by  these  irregular  steamships  on  lower 
rates  than  are  afforded  by  the  regular  steamship  lines. 
The  sailing  vessels  represent  the  cheapest  means  of  con- 
veyance. Practically  all  of  the  space  in  the  boat  can  be 
utilized  for  cargo,  none  of  it  being  given  over  to  motive 
power,  as  is  the  case  with  the  self-propelled  vessels. 
Likewise,  such  craft  are  operated  at  a  slight  expense  and 
consequently  ''schooner  competition,"  as  it  is  styled,  is 
recognized  by  all  steamship  companies  in  making  their 
rates.  Independent,  or  tramp,  vessels  usually  offer 
for  large  shipments  rates  that  are  less  than  those  made 
by  established  lines.  Vessels  of  this  class  are  not  en- 
gaged in  regular  service  between  any  two  points,  but  go 
where  there  is  a  likelihood  of  obtaining  cargoes.  This 
phase  of  transportation,  however,  is  fully  dealt  "with  in 
the  treatise  on  "Ocean  Traffic  and  Trade"  and  it  is  not 
necessary  at  this  point  to  enter  into  a  detailed  discussion 
of  the  peculiarities  of  competition  between  line  and  tramp 
boats. 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   121 

2.    Distances 

Especially  on  traffic  originating  in  Seaboard  Territory, 
the  all-water  rates  from  the  various  North  Atlantic  Ports 
to  Norfolk  are  a  factor  of  great  importance  in  establish- 
ing through  rates  to  interior  points  in  Southern  Terri- 
tory. Testimony  introduced  in  connection  with  the  peti- 
tions of  the  carriers  for  permission  to  violate  the  provi- 
sions of  the  fourth  section  of  the  Act  to  Regulate  Com- 
merce developed  that  the  distance  from  New  York  City 
to  Norfolk  via  the  steamer  lines  is  assumed  by  the  car- 
riers, for  the  purpose  of  divisional  rates,  to  be  equivalent 
to  160  miles  of  rail  haul.  On  this  basis  the  water-and-rail 
mileages  to  the  principal  South  Atlantic  Ports  are  com- 
pared with  the  all-rail  mileages  of  several  carriers.^ 

New  York  to  Charleston:  Miles 

Via  Southern  Railway,  all  rail 846 

Water  and  rail 746 

Via  Atlantic  Coast  Line,  all  rail 739 

Water  and  rail 552 

Via  Seaboard  Air  Line,  all  rail 831 

Water  and  rail 666 

New  York  to  Savannah: 

Via  Southern  Railway,  all  rail 870 

Water  and  rail 770 

Via  Atlantic  Coast  Line,  all  rail 854 

Water  and  rail 667 

Via  Seaboard  Air  Line,  all  rail 845 

Water  and  rail 680 

New  York  to  Brunswick: 

Via  Southern  Railway,  all  rail 966 

Water  and  rail 866 

Via  Atlantic  Coast  Line,  all  rail 1,008 

Water  and  rail 821 

Via  Seaboard  Air  Line,  all  rail 932 

Water  and  rail 767 

New  York  to  Jacksonville: 

Via  Southern  Railway,  all  rail 1,042 

Water  and  rail 942 

Via  Atlantic  Coast  Line,  all  rail 1,026 

Water  and  rail 839 

Via  Seaboard  Air  Line,  aU  rail 982 

Water  and  rail 817 

»30  I.  C.  C.  Rep.,  163. 


122       FREIGHT  RATES :   SOUTHERN  TERRITORY 

3.     PoRT-TO-PoRT  Rates 

(a)  Norfolk,   Va. 

The  all- water  rates  from  the  Eastern  Cities  to  Norfolk, 
Va.,  are  indicated  in  Table  24. 

TABLE  24 

Class  Rates  from  the  Eastern  Cities  to  Norfolk,  Va. 


To    N^rmTrnT  TT     Va 

Rates 

IN  Cents 

PER    IOC 

Pounds  Except 

AS 

^fOTE 

D 

From 

1 

2 

3 

4 

5 

Classes' 
6      A      B 

C 

D 

E 

H 

F« 

Boston 

45 
32 
40 
26 
23 
23 
6 
5 

39 
27 
25 
22 
22 
22 
6 
5 

34 
23 
22 
18 
19 
19 
6 
5 

30 
20 
18 
16 
15 
15 
4 
5 

25 
15 
14 
13 
13 
13 
4 
5 

223 

12 

11 

10 

11 

11 

4 

5 

12 
11 
10 
11 
11 
4 
5 

20 
18 
16 
11 
11 
4 
5 

i2 
11 

10 

11 
11 

4 
5 

i2 
11 
10 
11 
11 
4 
5 

i5 
14 
13 
13 
13 
4 
5 

20 
18 
16 
15 
15 
4 
5 

New  York 

''1 

Philadelphia 

?? 

Baltimore 

?n 

New  York< 

''0 

Philadelphia^ 

?n 

Baltimore* ' 

s 

Boston* » 

in 

>Governed  by  the  Southern  Classification,  except  as  noted. 

'Per  barrel. 

KSoverned  by  the  Official  Classification. 

♦Proportional  rates  applicable  only  on  traffic  destined  beyond.. 

•Less  than  the  New  York  scale. 

'Higher  than  the  New  York  scale. 

The  proportional  rates  are  those  used  in  constructing 
through  rates  to  interior  destinations  in  Southern  Terri- 
tory. These  proportional  rates  vary  sometimes  according 
to  the  destination  of  the  traffic  and  the  length  of  the  haul. 
This  feature,  however,  will  be  discussed  in  the  subsequent 
chapters  of  this  work  devoted  to  the  construction  of 
interstate  rail-and-water  rates. 

(b)  Wihiington,  N.  C. 

Wilmington,  N.  C,  as  the  principal  port  city  of  the 
state,  has  a  semi-weekly  service  via  the  Clyde  Line  to  and 
from  New  York.  The  class  rates  governed  by  the 
Southern  Classification  applicable  from  New  York  to 
Wilmington  are  as  follows: 

Classes 12  3  4  5  6 

Rates 50        40        34        28        20        16 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   123 
(c)  Georgetown,  S.  C. 

As  Georgetown  is  a  comparatively  small  port  when 
contrasted  with  Charleston,  which  ranks  among  the  fore- 
most of  American  seaports,  it  is  natural,  in  order  to  com- 
pete with  the  larger  ports,  that  the  rates  be  adjusted  on 
a  somewhat  lower  basis  than  is  accorded  its  stronger 
rival.  As  a  result,  the  Clyde  Line,  which  has  a  semi- 
weekly  service  between  New  York  and  this  port,  applies 
practically  the  same  rates  as  it  does  to  Wilmington,  N.  C. 


Classes 

1 

2 

3 

4 

5 

6 

Rates 

50 

43 

36 

29 

23 

16 

{d)  Charleston,  S.  C. 

This  is  the  principal  port  of  South  Carolina  and  next 
to  Savannah  the  most  important  of  the  South  Atlantic 
seaports.  The  Clyde  Line  affords  a  service  from  New 
York,  the  Philadelphia  &  Gulf  Steamship  Company  from 
Philadelphia,  the  Baltimore  &  Carolina  Steamship  Com- 
pany from  Baltimore,  and  the  Charleston  Steamship 
Company  from  Charleston  and  Georgetown,  S.  C. 

Representative  rates  to  Charleston  currently  in  effect 
from  New  York  are  as  follows : 


Classes 

1 

2 

3 

4 

5 

6 

Rates 

50 

47 

37 

29 

24 

19 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 

(e)  Savannah,  Ga. 

DuringHhe  year  1911  Savannah  handled  over  2,500,000  bales 
of  cotton  and,  next  to  Galveston,  Tex.,  is  the  largest  cotton 
market  in  the  world.  During  the  same  year,  404  irregular 
vessels,  consisting  of  schooners,  barks,  and  steamships,  not 
including  any  vessels  of  the  Ocean  Steamship  Company  or  of 

330  I.  C.  C.  Rep.,  170. 


124       FREIGHT  RATES :   SOUTHERN  TERRITORY 

the  Merchants  &  Miners  Transportation  Company,  entered 
Savannah.  Such  of  these  vessels  as  moved  to  and  from  eastern 
ports  handled  fertilizer  material,  salt,  cement,  plaster,  coal, 
iron  and  steel  articles,  brick,  oil,  gravel,  and  hay  from  north 
Atlantic  ports  to  Savannah  and  lumber  and  crossties  from 
Savannah  to  the  North  Atlantic  ports.  The  approximate 
amount  of  traffic  carried  by  these  irregular  vessels,  exclusive 
of  foreign  traffic,  from  the  north  Atlantic  ports  to  Savannah  was 
130,172  tons,  and  during  the  same  period  50,000,000  board  feet 
of  lumber  and  crossties  were  shipped  from  Savannah  by  these 
vessels.  These  outside  vessels  brought  into  Savannah  10,938 
tons  of  cement  at  a  rate  of  approximately  97  cents  a  ton,  as 
compared  with  the  rate  of  the  regular  steamship  companies  of 
SI. 50.  The  approximate  rates  charged  by  these  irregular 
vessels  from  North  Atlantic  ports  to  Savannah  are: 

PER  TON 

Fertilizer $1.50 

Salt 1.25 

Iron  and  steel  articles 1.70 

Plaster 97 

Coal 1.10 

Brick 1.09 

Hay 90 

The  Ocean  Steamship  Company  of  Savannah  affords 
a  through  ser\dce  from  New  York,  and  the  Merchants  & 
Miners  Transportation  Company  from  Baltimore  and 
Philadelphia.  The  rates  currently  in  effect  via  the  Ocean 
Steamship  Company  are  as  follows : 

Classes 1       2       34       5       6ABCDEHF 

Rates 57  47  37  29  24  19  18  18  IS  18  27  27  31 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 

(f)  Brunswick,  Ga. 

As  may  be  inferred,  the  local  traffic  of  Bruns^vick 
would  in  itself  hardly  be  worth  while  for  the  maintenance 
of  a  steamship  line.  However,  this  city  marks  the  ter- 
minus of  the  Atlanta,  Birmingham  &  Atlantic  Railroad, 
which  is  in  competition  with  the  lines  leading  out  of  Sa- 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   125 

vannah  for  business  to  and  from  the  interior.  Inasmuch 
as  there  is  not  a  great  deal  of  difference  in  the  haul  to  in- 
land points,  it  naturally  follows  that  to  compete  success- 
fully the  same  factors  will  have  to  be  applied  up  to  the 
ports  in  so  far  as  the  water  carriage  is  concerned.  This 
is  illustrated  by  the  fact  that  the  rates  currently  in  effect 
are  the  same  as  those  to  Savannah  set  forth  in  the  pre- 
ceding paragraph. 

(<;)  Jacksonville^  Fla. 

Jacksonville  is  the  principal  city  of  Florida  and  is 
served  by  the  following  steamship  companies:  The 
Clyde  Line  from  New  York,  four  sailings  per  week ;  the 
Southern  Steamship  Company  from  Philadelphia, 
Charleston,  Key  West,  and  Tampa,  one  sailing  per  week ; 
and  the  Merchants  &  Miners  Transportation  Company 
from  Baltimore  to  Savannah  and  Jacksonville,  three 
sailings  per  week. 

The  traffic  involved  in  this  instance  is  largely  local  to 
the  state  of  Florida ;  little  if  any  traffic  is  forwarded  via 
this  route  destined  to  interior  points  in  Southern  Terri- 
tory. The  immense  quantities  of  produce  raised  in  this 
state  and  its  popularity  as  a  resort  undoubtedly  have 
much  to  do  with  the  advantages  it  possesses  in  so  far  as 
water  transportation  is  concerned. 

Current  rates  in  effect  from  New  York  City  to  Jack- 
sonville are  as  follows: 

Classes 1  2  3  4  5  6 

Rates 67        57        47        33        26        20 

{h)   Tampa,  Fla. 

This  city,  located  on  the  west  coast  of  the  peninsula  of 
Florida,  is  afforded  a  weekly  service  from  New  York  by 


126       FREIGHT  RATES :   SOUTHERN  TERRITORY 

the  Mallory  Steamship  Company.     The  rates  currently 
in  effect  via  this  route  are  as  follows : 

Classes 1  2  3  4  5  6 

Rates 95        80        65        55        45        40 

These  rates  are  governed  by  the  Southern  Classifica- 
tion. 

(i)   Gulf  Ports 

Considering  the  length  of  the  water  haul  involved,  the 
rates  to  the  more  important  Gulf  ports  are  on  a  relatively 
low  basis  as  contrasted  with  the  water  rates  to  the  more 
closely  situated  South  Atlantic  Ports,  taking  New  York 
as  a  point  of  origin.  This  is  illustrated  by  the  rates 
currently  in  effect  via  the  water  line,  which  are  set  forth 
in  Table  25. 

TABLE  25 

All-Water  Class  Rates  from  New  Nork,  N.  Y., 
TO  Gulf  Ports 


From 
New  York,  N.  Y., 
To 

Rates  in  Cents  per  100  Pounds 

Classes^ 
12          3          4          5          6 

Mobile,  Ala 

New  Orleans,  La 

75        65        54        44        38        33 
70        60        50        40        35        30 

Pensacola,  Fla 

70        60        50        40        35        30 

'Governed  by  the  Official  Classification. 


Statistics  were  introduced  in  a  recent  federal  investi- 
gation indicating  that  the  southbound  tonnage  forwarded 
via  the  Morgan  Line  from  Seaboard  Territory  to  New 
Orleans,  La.,  for  the  first  eleven  months  of  the  year  1911, 
aggregated  246,000  tons,  and  that  during  the  same  period 
the  deliveries  of  the  Mobile  &  Ohio  Eailroad  and  the 
Louisville   &   Nashville   Railroad   were   but   577   tons. 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   127 

From  the  foregoing,  it  may  be  seen  that  while 
the  traffic  on  the  interior  waterways  has  dwindled 
considerably  in  the  past  decade  and  may  consequently 
be  considered  as  potential,  the  competition  on  the  high 
seas  is  aggressive  and  controlling.  It  would  seem,  con- 
sidering the  competition  of  the  markets  and  the  volume 
of  traffic  involved,  that  the  rates  from  New  York  to  New 
Orleans  and  Mobile  must  be  considered  as  controlling 
factors  in  this  adjustment.  All  points  located  adjacent 
to  the  seaboard  have  the  advantage  of  location  over  such 
markets  as  St.  Louis,  Chicago,  Cincinnati,  and  other 
points  located  on  inland  waterways  by  reason  of  the  fact 
that  the  cost  of  operation  on  the  high  seas  is  considerably 
less  than  that  for  inland  navigation.  Owing  to  dock  facil- 
ities, the  vessels  are  greater  in  size  and  consequently 
larger  cargoes  may  be  carried. 

4.    Rates  to  and  from  Interior  Points  in  Trunk  Line 
AND  New  England  Territories 


The  effects  of  this  water  competition  are  far-reaching 
and  are  felt  not  only  in  the  immediate  vicinity  of  the 
port  cities,  but,  for  illustration,  in  the  instance  at  hand 
the  rates  made  by  the  water  carriers  between  New  York 
and  New  Orleans  are  felt  throughout  the  entire  eastern 
section  of  the  United  States. 

By  an  ingenious  system  of  rate-making  known  as  the 
absorption  plan,  the  application  of  the  water  rates  are 
extended  to  practically  all  of  Trunk  Line  and  New 
England  territories. 

Prior  to  the  issuance  of  the  tariff  regulations  of  the 
Interstate  Commerce  Commission,  this  plan  of  rate- 
making  was  expressed  in  the  following  manner,  taking 


128       FREIGHT  RATES :   SOUTHERN  TERRITORY 

the  rates  to  Mobile,  Ala.,  via  the  Mallory  Steamship 
Company  as  an  example  :^ 

The  Mallory  Steamship  Company  will  accept  for  its  service 
from  New  York  to  Mobile,  Alabama,  rates  yielded  by  deducting 
from  the  rates  shown  in  schedule  No.  1  of  the  following  table, 
the  rates  shown  in  Schedule  2.  To  the  net  rates  so  established 
must  be  added  the  published  tariff  rate  from  point  of  origin  to 
New  York  (and  the  cost  of  transfer  when  the  rates  do  not  in- 
clude free  lighterage  at  New  York  harbor)  and  further  provided 
that  the  rates  shown  in  Table  1  are  in  all  cases  to  be  the  mini- 
mum through  rates. 


SCHEDULE 

I 

SCHEDULE 

II 

Minimum 

Through 

Class 

Maximum 

Class 

Deduc- 

From 

Rates 

IN 

Cents 

PER 

TIONS 

IN 

Cents 

PER 

100  Pounds 

100  Pounds 

1     2 

3 

4 

5 

6  R25R26 

1 

2 

3 

4 

5 

6 

R25  R26 

Connecticut  stations 

75  65 

54 

44 

38 

33 

55 

44 

16 

15 

14 

12 

12 

10 

14 

12 

Wilmington,  Del 

75  65 
75  65 

44 
54 

44 
44 

38 
38 

33 
33 

55 
55 

44 
44 

28 
26 

23 
20 

19 
16 

14 
13 

12 
12 

10 
10 

lyi 

17 

15 

Washington,  D.  C 

13 

Portland,  Me 

75  65 

76  65 
75  65 

54 
54 
54 

44 
44 
44 

38 
38 
38 

33 
33 
33 

55 
55 
55 

44 
44 
44 

16 

(') 
16 

15 
15 

14 
14 

12 
12 

12 
12 

10 
10 

14 
14 

12 

Baltimore,  Md 

Massachusetts  stations. .  .  . 

12 

New  Jersey  stations 

75  65 

54 

44 

38 

33 

55 

44 

15 

12 

10 

9 

8 

8 

10 

9 

New  York  stations 

75  65 

54 

44 

38 

33 

55 

44 

15 

12 

10 

9 

8 

8 

10 

9 

Eddystone,  Pa ( 

Chester,  Pa f 

75  65 

54 

44 

38 

33 

55 

44 

15 

12 

10 

9 

8 

8 

10 

9 

Philadelphia,  Pa 1 

Camden,  N.  J ) 

75  65 

54 

44 

38 

33 

55 

44 

(') 

Rhode  Island  stations 

Virginia: 

Newport  News 

75  65 

54 

44 

38 

33 

55 

44 

16 

15 

14 

12 

12 

10 

14 

12 

85  73 

60 

47 

41 

35 

62 

48 

32 

28 

25 

22 

17 

15 

25 

22 

Norfolk ( 

Portsmouth > 

85  73 

60 

47 

41 

35 

62 

48 

(') 

Richmond ) 



'Published  tariff  rates  to  Mallory  Line  Pier. 


For  the  purpose  of  illustrating  the  application  of  this 
table,  assume  that  it  is  desired  to  construct  rates  from 
Tuckahoe,  N.  Y.,  from  which  point  the  rates  currently  in 
effect  to  New  York,  including  free  lighterage,  are : 


Classes 12  3  4 

Rates 17         15         13         10 


6 

7 


Through  rates  would  be  obtained  by  deducting  the 
maximum  absorption  sho^vn  in  Schedule  II  from  the 
scale  applying  from  New  Y^ork  stations  given  in  Schedule 

•Taken  from  a  tariff  publication  of  the  Mallory  Line. 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   129 

I,  and  then  adding  to  these  rates  the  rates  applying  to 
New  York.    For  example : 

Classes 1  1^  3  4  5  6 

Rates  from  New  York  City 

to  Mobile,  Ala 75  65  54  44  38  33 

Differentials 15  12  10  9  ^  _^ 

Through  rates  from  New- 
York  City  to  Mobile,Ala.  60    ■    53        44        35        30        25 

Rates  from  Tuckahoe,  N.Y., 

to  New  York  City 17        15        13         10  8^        7 

Through  rates  from  Tucka- 
hoe, N.Y.,  to  Mobile.Ala.  77    68        67        45  38^      32 

With  the  exception  of  the  sixth-class  rate,  the  above 
rates  would  be  applied  on  traffic  originating  at  Tuckahoe, 
N.  Y.,  and  forwarded  via  the  New  York  Central  Lines  by 
way  of  New  York  and  the  Mallory  Line.  In  the  case  of 
the  sixth-class  rate,  as  it  is  less  than  the  minimum  rates 
named  in  Schedule  I,  the  rate  is  increased  to  33  cents  in 
order  to  comply  with  this  requirement. 

As  this  method  of  constructing  rate  schedules  was  not 
permitted  by  the  Interstate  Commerce  Commission  under 
its  requirements,  it  became  necessary  for  the  water  car- 
riers to  adopt  some  other  means  of  publishing  rates, 
with  the  result  that  today  specific  through  rates  are  pub- 
lished from  individual  points  and  groups  of  points.  In 
Table  26  is  given  a  list  of  representative  points  within 
Seaboard  Territory,  showing  the  group  to  which  each 
is  assigned,  while  in  Tables  27  and  28  are  given  the 
through  class  and  commodity  rates  from  these  groups  to 
New  Orleans,  La. 

Attention  is  directed  to  the  fact  that  where  the  trans- 
portation to  New  York  is  by  water  or  partly  by  water 
a  lower  scale  of  rates  is  provided  in  many  instances  than 
when  the  movement  to  the  port  is  via  a  rail  carrier. 


130       FREIGHT  RATES :   SOUTHERN  TERRITORY 

TABLE  26 

Grouping  of  Eastern  Points  of  Origin  for  Rates  to 
New  Orleans,  La.,  via  Gulf  Routes 


Station 


Allentown,  Pa 

Amsterdam,  N.  Y.  .  . 

Arlington,  Mass 

Ashbumham,!  Mass. . 

Augusta,^  Me 

Baltimore,  Md 

Barclay,  Md 

Bayside,  N.  J 

Beach  Haven,  N.  J.  . 

Boston,  Mass 

Bruceton,  Pa 

Bnmswick,  Me 

Buffalo,  N.  Y 

Camden,  N.  J 

Chester,  Pa 

Chester  Springs,  Pa. . 

Concord,  N.  H 

Costigans,''  Me 

Croydon,  Pa 

Cumberland,  Md.  .  .  . 
Cumberland  Jet.,  Me. 
Cumberland  Jet.,'  Me 

Dover,  N.  J 

Eastport,  N.  Y 

Eleanora,Pa 

EUzabeth,  N.  J 

Fairchance,  Pa 

Floral  Park,  N.  Y.  .  . 

Grafton,  W.  Va 

Hagerstown,  Md.  .  .  . 

Hallmans,  Pa 

Harrisburg,  Pa 

Hartford,  Conn 

Havre  de  Grace,  Md . 
Huntington,  N.  Y .  .  . 


Group 


Station 


-A 
-C 


11-A 
13 

3 
12 
22 

9 

19-A 
13-A 
13-A 

2 
17 
20 
17-A 

8 

12- 
12- 
20 
25 

8-A 
14-B 
20 
15-A 

8 

12-B 
19 

5 
19 

2-A 
18 

14-B 
12-C 
14-A 
10-A 
14-B 

6-A 


Islip,  N.  Y 

Jamestown,  N.  Y 

Kingston,  R.  I 

Kingston,^  R.  I 

Little  Ferry,  N.  J 

Newark,  N.  J 

New  Haven,  Conn .  . . . 
Niagara  Falls,  N.  Y. .  . 
Ogdensburg,  N.  Y.  .  .  . 

Oil  City,  Pa 

Orange,  N.  J 

Orleans,  Mass 

Orleans,*  Mass 

Paterson,  N.J 

Philadelphia,  Pa 

Pittsburgh,  Pa 

Portland,  Me 

Portland,3  5  Me 

Poughkeepsie,  N.  Y. .  . 

Reading,  Pa 

Rochester,  N.  Y 

Readfield,^  Me 

Rutland,  Vt 

Schenectady,  N.  Y. .  .  . 
Sheepshead  Bay,  N.  Y 

Skowhegan,''  Me 

Springfield,  Mass 

Syracuse,  N.  Y 

Troy,  N.  Y 

Troy,  Pa 

Utica,  N.  Y 

Watertown,  N.  Y  .  .  .  . 

West  Point,  N.  Y 

Williamsport,  Pa 

Yarmouth,  Me 


Group 


6-A 
17-A 
15 

6 

4 

1 
10-A 
17-A 
21 
18 

5 
15 
10 

5 

1-A 
18 
20 

6-B 

7 

14-A 
14 
24 
15 
11 

1-B 
25 

10-A 
14 
11 

14-A 
14 
21 

7 

14-A 
20 


•Rates  apply  in  connection  with  the  New  England  Navigation  Company 
and  the  MetropoUtan  Steamship  Company. 

'Rates  apply  in  connection  with  the  Maine  Steamship  Company  and  the 
MetropoUtan  Steamship  Company. 

'Rates  apply  in  connection  with  the  MetropoUtan  Steamship  Company. 

♦Rates  apply  in  connection  with  the  New  England  Navigation  Company. 

»Rate8  apply  in  connection  with  the  MetropoUtan  Steamship  Company 
and  the  Boston  and  Maine  Railroad. 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   131 


TABLE  27 
Class  Rates  from  Points  in  Atlantic  Seaboard  Territory 


Rates  in  Cents  per  100  Pounds 

Fbom  Gbotjp  No. 

Classes' 
12     3     4     5     6    R25   R26   R28 

1 

70     60     50    40    35     30    51     40    431 
70     60     50    40    35    30     51     40    43 
70     60     51     41     35     30     51     41     44 
72     61     51     41     35     31     52     41     44 

72  63     53     43     36    30     531    43     46 

73  64     55     44     39     33     55    44     48 

lA 

IB 

2 

2A 

3 

4 

75    65     55     45    39     32     55     45     481 
75    68     57     44     371    311    68    46    481 
77     68     59     49     44     37     59     49     521 
79     69     58     47    39     32     59     47     51 

6 

6 

6A 

6B 

78    68     58     47    41     35     59     47     51 

7 

80    69     58     47    39     32     59     47     51 

8 

81     70     59     47     371    311    591    47     51 

81  70     59     47     371    311    591    47     51 
80    70     58    48    38     32     591    48     511 

82  73     63     62    44    40     63     52     56 

8A 

9 

10 

lOA 

82     73     63     52     44     40     63     52     "56 

11 

85  73     61     48     39     32     62     49     521 

86  74     62     481    381    32     63     50     53 

86  76     66     53     44     40     66     53     571 

87  75     63     49     39     321    64     50    54 
87     76     63     52     43     35     65     52     56 

IIA 

12 

12A 

12B 

12C 

88     76     64     501    401    33     65     51     55 
90     76     64     50    41     34     65     51     55 

13 

13A 

91  78     66     53    41     35     66     53     571 

92  76     64     50    41     35     65     51     55 

14 

92     76     64     50    41     35    65     51     55 

14B 

92     76    64     50    41     37     65     51     55 

94    82     66     53     44     40    70     53     571 
94     82     66     53    44     40    70     53     571 
94     82     69     53    42     35     70     55    581 
98    85     72     54    43    35     72     58    601 
98     81     68     53    43    39     69     54     58 

ISA 

17 

18 

98     81     68     53    43     39     69     54     58 

98     81     68     53    43     39     69     54     58 

19A 

100     84     67     53    44     38    71     54     58 

100    84     67     53     44    40    71     54    68 

21 

100    84     67     53    44     40    71     54     58 

104    90    73    61    50    42    761    61    65 
104     92     79     65    52    44     79     65    70 

23 

113    96    78     63     52    43     82    63    68 

25 

119    106    83    65    54    45    90    66    711 

•Governed  by  the  Official  Classification. 

5.    Eates  From  Points  in  Central  Freight  Association 

Territory  to  South  Atlantic  Coast  Points  via 

North  Atlantic  Coast  Ports  and  Ocean 

The  bases  employed  result  in  through  published  rates 
which  are  made  by  using  full  rates  to  the  North  At- 
lantic Ports  and  adding  thereto  the  proportional  rates  of 
the  ocean  carriers. 


132       FREIGHT  RATES :   SOUTHERN  TERRITORY 

TABLE  28 
Commodity  Rates^  Applicable  Only  from  Points  Specified 


Commodities 

From 

Rate 

From 

Rats 

li.C.L. 

C.L. 

L.C.L. 

C.L. 

Alcohol,  in  barrels 

Baltimore Md. 

54 

43 

Buffalo N.  Y. 

43 

43 

Ale,  in  standard  packages 

Baltimore Md. 

Buffalo N.  Y. 

Hudson N.  Y. 

Newark N.  J. 

37 
38 
32 
30 

Ogdensburg,  N.  Y.  . 
Philadelphia.  .  .  .Pa. 
Syracuse N.  Y. 

42 
32  i 
37 

Ammunition: 

Cartridges    (Paper    or 
Metallic    Shells, 
Loaded),    for    small 
arms    only,     boxed, 
minimum       carload 
weight               30,000 
pounds 

Bridgeport .  .  .  Conn. 

42 

New  Haven .  .  Conn. 

4? 

Bagging  (for  Baling  Cot- 
ton),   in    bales,    mini- 
mum    weight     30,000 
pounds 

Ludlow Mass. 

27 

Bagging,   in   rolls,    mini- 
mum   carload    weight 
24,000  pounds 

Ludlow Mass. 

27 

Bags  and  Bagging  (Old), 
in  bales,  minimum  car- 
load weight  30,000  lbs. 

Baltimore Md. 

Boston Mass. 

Camden N.  J. 

•■ 

28 
29 
28 

Norfolk Va. 

Philadelphia Pa. 

38 
28 

Baking    Powder,    in    tin, 
packed  in  boxes,  mini- 
mum   carload    weight 
30,000  pounds 

Baltimore Md. 

Fredericksburg  .Va. 

56 

40 
43 

Manchester Va. 

Richmond Va. 

56 

43 
43 

Baskets  (Splint),  nested. 

Northeast Md. 

116i 

Beans  (Dried),  minimum 
carload   weight   40,000 
pounds 

Akron N.  Y. 

Albion N.  Y. 

Alexander N.  Y. 

Alton.  ..• N.  Y. 

Attica N.  Y. 

Avon N.  Y. 

Baltimore Md. 

Barker N.  Y. 

Brockport N.  Y. 

Caledonia N.  Y. 

Canandaigua. .  N.  Y. 

Cay  wood N.  Y. 

Craigs N.  Y. 

Dansville N.  Y. 

Geneseo N.  Y. 

Groveland N.  Y. 

Holcomb N.  Y. 

Honeoye  Falls.N.  Y. 

Kendaia N.  Y. 

Leicester N.  Y. 

Le  Roy N.  Y. 

35 
35 

35 
36 
35 
35 
35 
36 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 

Lockport N.  Y. 

Marion N.  Y. 

(Note  AA) 

Medina N.  Y. 

Middlesex N.  Y. 

Naples N.  Y. 

Newark N.  Y. 

North  Rose. .  .  N.  Y. 

Nunda N.  Y. 

Oakfield N.  Y. 

Palmyra N.  Y. 

Penn  Yan N.  Y. 

Perry N.  Y. 

Prattsburg N.  Y. 

Rochester.  .  .  .N.  Y. 

Rushville N.  Y. 

Scottsville N.  Y. 

Shortsville. .  .  .  N.  Y. 
Trumansburg .  N.  Y. 

Walker N.  Y. 

Waterport N.  Y. 

Williamson .  .  .  N.  Y. 

35 
35 

35 
35 
35 
35 
36 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
35 
33 
36 
35 

iRates  in  cents  per  100  pounds  except  as'noted. 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   133 

In  Table  29  are  set  forth  the  rates  via  New  York  and 
the  ocean  to  Wilmington,  N.  C,  Georgetown  and  Charles- 
ton, S.  C,  Savannah  and  Brunswick,  Ga.,  and  Jackson- 
ville, Fla. 

TABLE  29 

Class  Rates  from  Central  Freight  Association  Points 
TO  South  Atlantic  Ports 


To 

South  Atlantic  Ports 

From 


Benton  Harbor,  Mich. 

Cairo,  111 

Chicago,  111 

Cincinnati,  Ohio 

Cleveland,  Ohio 

Detroit,  Mich 

Elkhart,  Ind 

Fort  Wayne,  Ind 

Grand  Rapids,  Mich. . 
Indianapolis,  Ind.  .  .  . 

Jackson,  Mich 

Lansing,  Mich 

Louisville,  Ky 

Peoria,  111 

St.  Louis,  Mo 

South  Bend,  Ind 

Toledo,  Ohio 


Rates  in  Cents  per  100  Pounds 


1 


Classes' 
3  4 


109 
127 
112 
102 

85 

95 
109 
104i 
109 
106§ 
106 
108 
112 
119J 
1241 
109 


94i 
110 
97 

88^ 

72 

82i 


92 

93  i 

99 
1031 
108 

94i 

82i 


75 

87 

77 

70^ 

53^ 

66 

75 

72 

75 

73^ 

73 

7^ 

77 

82 

85^ 

75 

66 


55i 

64 

57 

53^ 

40 

491 

55i 

53J 

55^ 

54i 

54 

55 

55    ^    45 

60^^48 

63   i,     50 

55^    "    44 

491        38i 


44 
51 

45 

41 

30 

38^ 

44 

42 

44 

43 

42i 


6 


36 

42 

37 

33i 

25 

3U 

36 

34J 

36 

35 

35 

35i 

37 

39i 

41 

36 

31i 


'Governed  by  the  Official  Classification. 

The  class  rates  shown  in  Table  29  applying  from 
Cincinnati,  Louisville,  St.  Louis,  and  other  points  via 
New  York  and  the  ocean  to  the  South  Atlantic  Ports  are 
governed  by  the  Official  Classification.  Some  of  these 
rates  are  higher,  though  most  of  them  are  lower,  than 
the  rates  of  the  all-rail  lines  on  the  corresponding  classes, 
which  are  governed  by  the  Southern  Classification.  The 
trunlc  lines  serving  the  Ohio  River  through  Baltimore  in 
connection  with  the  Merchants  &  Miners  Transportation 
Company  provide  for  through  rates  to  South  Atlantic 


134       FREIGHT  RATES :   SOUTHERN  TERRITORY 

Ports,  subject  to  the  Southern  Classification,  on  the  basis 
of  the  following  differentials  under  the  rates  pubhshed 
by  the  all-rail  lines : 


Classes. . . 

..   1 

2 

3 

4 

5 

6 

A 

B 

E 

H 

Rates. .  .  . 

..  8 

6 

5 

4 

3 

2 

2 

2 

3 

4 

If  the  rates  made  on  this  basis,  governed  by  the 
Southern  Classification,  are  lower  than  the  published 
rates,  governed  by  the  Official  Classification,  the  lower 
rates  are  applied. 

(a)  From  New  Orleans,  La. 

The  rates  currently  in  effect  via  the  all-water  routes 
to  the  South  Atlantic  Ports  are  not  obtainable  at  this 
time.  In  Table  30,  however,  are  given  the  all-rail  rates 
applicable  from  New  Orleans,  La.,  to  the  South  Atlantic 
Ports.  As  these  rates  are  claimed  to  be  fixed  by  the 
water  competition,  the  rates  set  forth  in  this  table  give 
some  idea  as  to  their  measure. 


TABLE  30 

All-Rail  Class  Rates  from  New  Orleans,  La.,  to 
South  Atlantic  Ports 


From 

Rates  in  Cents  per  100  Pounds 

New  Orleans,  La., 
To 

Classes' 
12          3          4          5          6 

Charleston,  S.  C 

91         76        71         66        54        42 

Savannah,  Ga 

Brunswick,  Ga 

91         76        71         66        54        42 
91        76        71        66        54        42 

Jacksonville,  Fla 

72        60        57        53        44        35 

Tampa,  Fla 

122       103        91        85        72        62 

'Governed  by  the  Official  Classification. 

These  rates  are  necessitated  by  the  direct  water  com- 
petition on  the  Atlantic  Ocean  and  the  Gulf  of  Mexico. 
The  Philadelphia  &  Gulf  Steamship  Company  furnishes 


INTERSTATE  RATES  VIA  COASTWISE  ROUTES   135 

a  regular  service  twice  a  month  between  Charleston, 
S.  C,  and  New  Orleans,  La.  The  Paye  Steamship  Com- 
pany furnishes  the  regular  all-water  service  between 
Tampa,  Fla.,  and  New  Orleans,  La.  There  is  no  regular 
all-water  service  between  New  Orleans  and  Savannah, 
Brunswick,  or  Jacksonville.  Such  other  water  service  as 
exists  is  that  furnished  by  irregular  steamers  and  sailing 
vessels. 

For  many  years  the  rail  carriers  have  not  enjoyed  the 
traffic  of  sugar,  coffee,  molasses,  and  rice  from  New 
Orleans  territory  to  Charleston.  This  traffic  moves  via 
all  water,  and  the  rail  carriers  have  been  unable  to  secure 
it  from  the  water  carriers.  Facilities  are  at  hand  at 
Charleston  for  unloading  cargoes  into  the  warehouses 
of  the  Charleston  Terminal  Company,  which  extend  along 
the  water  front;  this  material  is  then  distributed  to  the 
interior  points  as  necessity  may  demand.  A  very  large 
movement  of  the  coastwise  vessels  into  and  out  of  the 
ports  of  Savannah,  Brunswick,  Jacksonville,  and  Tampa 
is  indicative  of  the  heavy  coastwise  movement  between 
these  points  and  other  Atlantic  and  Gulf  ports. 


TEST  QUESTIONS 

These  questions  are  for  the  student  to  use  in  testing 
his  knowledge  of  the  assignment.  The  answers  should 
be  written  out,  but  are  not  to  be  sent  to  the  University. 

1.  In  some  instances,  how  may  the  rates  to  Atlanta,  Ga., 
be  figured? 

2.  What  is  the  chief  factor  in  measuring  intrastate  rates? 

3.  What  commissions  in  Southern  Territory  have  been 
particularly  active  in  prescribing  charges  applicable  within 
their  states? 

4.  Assuming  that  a  change  is  made  in  the  rates  from  At- 
lanta, Ga.,  to  Brunswick,  Ga.,  what  is  the  result  as  far  as  At- 
lanta, Ga.,  and  Charleston,  S.  C,  are  concerned? 

5.  How  is  the  term  "continuous  mileage"  defined? 

6.  Into  what  classes  are  the  railroads  of  the  state  of 
Georgia  assigned  by  the  commission  of  that  state? 

7.  To  what  extent  may  the  rates  of  Class-D  roads  exceed 
the  rates  of  Class-A  roads  on  Classes  1,  2,  3,  4,  5,  and  6, 
under  the  rules  of  the  Georgia  Railroad  Commission? 

8.  What  is  the  rule  of  the  Georgia  Railroad  Commission 
respecting  joint  rates? 

9.  How  should  the  joint  rates  between  carriers  within  the 
state  of  Georgia  be  divided? 

10.  How  are  the  additional  classes  other  than  those  pro- 
vided for  in  the  Southern  Classification  accounted  for  in  the 
Georgia  scale? 

11.  What  would  be  the  difference  in  charges  on  two  car- 
loads of  drain  tile  shipped  a  distance  of  100  miles  over  a  single 
line,  one  of  them  being  shipped  at  the  owner's  risk  and  the 
other  at  the  carrier's  risk,  the  weight  of  both  cars  being  30,000 
pounds  ? 

12.  (a)  What  distance  is  fixed  by  the  Georgia  Railroad 
Commission  from  Brunswick,  Ga.,  to  Birmingham,  Ala.,  via 
the  Atlanta,  Birmingham  &  Atlantic  Railroad?  (b)  From 
Atlanta,  Ga.,  to  Brunswick,  Ga.,  via  the  Southern  Railway? 

136 


TEST  QUESTIONS  127 

13.  How  are  joint  lines  defined  by  the  Georgia  Railroad 
Commission? 

14.  In  constructing  rates,  what  distance  would  be  em- 
ployed if  the  actual  distance  was  4.1V2  miles? 

15.  What  would  be  the  class  rates  applicable  upon  a  tap 
line  9 A  miles  in  length? 

16.  How  does  the  Railroad  Commission  of  Tennessee  pre- 
scribe rates  applicable  upon  intrastate  traffic? 

17.  (a)  What  compels  the  low  rates  from  Memphis,  Term., 
to  Nashville,  Tenn.  ?  (b)  From  Chattanooga,  Tenn.,  to  Nash- 
ville, Tenn.? 

18.  To  what  causes  may  be  ascribed  the  comparatively  low 
rates  from  the  Eastern  Cities  to  Jacksonville,  Fla.  ? 

19.  As  a  general  rule,  how  are  rates  to  interior  points  in 
Florida  constructed? 

20.  Enumerate  the  rates  on  Classes  1,  2,  3,  4,  5,  and  6  appli- 
cable from  Jacksonville,  Fla.,  to  Miami,  Fla, 

21.  In  what  respect  does  the  joint-rate  rule  of  the  Florida 
Railroad  Commission  differ  from  that  of  the  Georgia  Railroad 
Commission  ? 

22.  When  did  the  present  class  rates  prescribed  by  the 
North  Carolina  Railroad  Commission  become  effective? 

23.  How  would  the  rates  for  a  joint  haul  over  two  inde- 
pendent lines  for  a  distance  of  50  miles  be  constructed  under 
the  rules  of  the  North  Carolina  Railroad  Commission? 

24.  In  what  respect  does  the  minimum-charge  rule  of  the 
North  Carolina  Railroad  Commission  differ  from  that  of  the 
Southern  Classification? 

25.  What  conditions  cause  a  departure  from  the  Southern 
Classification  in  so  far  as  traffic  in  West  Virginia  is  concerned  ? 

26.  In  cases  where  the  Southern  Classification  governs  rates 
in  West  Virginia,  are  the  rates  subject  to  revision  by  the  com- 
mission of  that  state? 

27.  On  what  basis  are  rates  between  Ashland  and  Mays- 
ville,  Ky.,  and  Cincinnati,  Ohio,  via  the  Chesapeake  &  Ohio 
Railway,  constructed? 

28.  What  causes  comparatively  low  rates  via  rail  lines  be- 
tween Cincinnati,  Ohio,  and  Louisville,  Ky.,  both  in  Official 
Classification  and  Southern  territories? 


138  TEST  QUESTIONS 

29.  To  what  fact  did  the  Virginia  Corporation  Commission 
give  particular  weight  in  prescribing  rates  for  the  carriers 
operating  within  that  state? 

30.  A  shipment  of  hemlock  lumber  moving  in  carloads  via 
the  Norfolk  and  Western  Railway  for  a  distance  of  161  miles 
would  be  charged  for  on  what  basis? 

31.  Outline  in  general  the  basis  employed  in  making  intra- 
state rates  within  South  Carolina. 

32.  What  adjustment  is  prescribed  by  the  Alabama  Rail- 
road Commission? 

33.  Does  the  state  of  Mississippi  prescribe  an  individual 
classification  ? 

34.  (a)  What  separate  classifications  are  authorized  within 
the  state  of  Louisiana?  (b)  In  what  territory  is  each  applica- 
ble? 

35.  What  is  the  substance  of  the  Louisiana  Railroad  Com- 
mission's report  relative  to  water  transportation  within  that 
state  ? 

36.  To  what  extent  are  independent  water  carriers  under 
the  jurisdiction  of  the  Interstate  Commerce  Commission? 

37.  Where  is  the  most  aggressive  water  competition  expe- 
rienced? 

38.  What  is  the  usual  outcome  of  a  rate  war  between  inde- 
pendent water  carriers? 

39.  What  means  of  transportation  are  still  employed  upon 
the  inland  waterways? 

40.  What  constitutes  the  great  majority  of  tonnage  on  the 
Ohio  River? 

41.  Can  the  railroads  meet  the  competition  of  the  water 
carriers  in  so  far  as  coal  is  concerned? 

42.  Enumerate  the  more  important  water  lines  operating 
upon  the  Ohio  River. 

43.  Give  a  brief  summary  of  conditions  of  water  transpor- 
tation upon  the  Green  and  Barren  rivers. 

44.  When  was  steam  navigation  first  attempted  upon  the 
Mississippi  River? 

45.  On  what  basis  are  the  rates  on  show  cases  announced 
from  Evansville,  Ind.,  to  Mammoth  Cave,  Ky.,  via  the  water 
lines  ? 


TEST  QUESTIONS  139 

46.  On  what  adjustment  of  differentials  are  the  rates  estab- 
lished by  the  Mississippi  Valley  Transportation  Company  to 
New  Orleans  related  to  the  all-rail  rates? 

47.  To  what  causes  may  be  ascribed  the  remarkable  falling 
off  of  traffic  handled  on  the  Mississippi  River? 

48.  What  are  the  rates  on  the  first  six  classes  from  Padu- 
cah,  Ky.,  to  Perryville,  Tenn.,  via  the  Tennessee  River? 

49.  How  are  the  rates  published  via  the  lines  operating 
upon  the  Cumberland  River? 

50.  By  whom  are  the  rates  applicable  via  the  water  carriers 
from  Mobile,  Ala.,  to  Montgomery,  Ala.,  prescribed? 

51.  Give  a  brief  summary  of  the  conditions  prevailing  upon 
the  Chattahoochee  River. 

52.  Via  what  class  of  water  carriers  is  transportation  af- 
forded on  the  Flint  River? 

53.  For  how  long  has  transportation  by  water  upon  the 
Savannah  Railroad  been  in  existence? 

54.  What  line  affords  water  service  upon  the  Altamaha 
River? 

55.  How  may  insurance  affect  the  patronage  of  water 
routes  ? 

56.  What  is  the  rate  of  insurance  from  St.  Louis,  Mo.,  to 
Memphis,  Tenn.? 

57.  What  are  "dock  to  dock"  rates?  Are  they  subject  to 
the  requirements  of  the  Interstate  Commerce  Commission? 

58.  Why  do  sailing  vessels  represent  the  cheapest  means  of 
conveyance  upon  the  high  seas? 

59.  To  what  class  of  traffic  do  sailing  vessels  and  tramp 
boats  cater? 

60.  How  does  the  constructive  mileage  via  the  water-and- 
rail  lines  from  New  York  City  to  Jacksonville,  Fla.,  compare 
with  the  continuous  mileage  of  the  all-rail  lines  ? 

61.  What  water  service  is  accorded  the  city  of  Wilmington? 

62.  Are  the  water  rates  to  Charleston,  S.  C,  on  the  same 
level  as  those  to  Georgetown,  S.  C.  ? 

63.  Give  a  brief  summary  of  the  conditions  existing  at 
Savannah,  Ga.,  during  1911  with  respect  to  water-borne  traffic. 


140  TEST  QUESTIONS 

64.  What  is  the  occasion  of  the  establishment  of  water 
routes  to  and  from  Brunswick,  Ga.  ? 

65.  How  do  the  water  rates  from  New  York  City  to  Jack- 
sonville, Fla.,  compare  with  the  rates  to  Tampa,  Fla.  ? 

66.  Via  what  routes  is  the  bulk  of  traffic  from  Seaboard 
Territory  to  the  Gulf  ports,  New  Orleans  and  Mobile,  for- 
warded ? 

67.  Give  an  illustration  of  the  Diaking  of  rates  under  the 
absorption  plan. 

68.  What  are  the  class  rates  applicable  from  Reading,  Pa., 
to  New  Orleans,  La.,  in  connection  with  the  Morgan  Line? 

69.  How  much  higher  is  the  rate  from  Chicago,  111.,  to 
Jacksonville,  Fla.,  via  New  York,  than  the  rate  to  New  York, 
proper  ? 

70.  What  adjustment  is  authorized  for  the  use  of  a  trunk 
line  serving  the  Ohio  River  through  Baltimore  in  making 
rates  to  the  South  Atlantic  Ports? 

71.  What  compels  the  comparatively  low  rates  from  New 
Orleans,  La.,  to  the  South  Atlantic  Ports? 


CHAPTER  X 
southeastern  territoryi 

1.    Development  of  Rate  Steuctuee 

The  so-called  Southeastern  Territory  embraces  by 
far  the  greatest  area  of  any  rate-making  territory  in 
the  southern  states.  In  the  early  days,  when  the  rate 
structure  of  this  territory  was  being  forged  into  a 
settled  shape,  Atlanta,  Ga.,  marked  the  outpost  at 
which  the  separate  railroads  and  joint  routes  from 
the  East  met  those  from  the  West.  In  this  way,  Atlanta 
became  the  pivotal  point  of  rate  construction  for  rates 
from  points  outside  of  this  territory  to  destinations 
therein. 

In  other  words,  Atlanta  was  on  the  edge  of  that  zone 
where  a  single  railroad  and  its  partners  were  in  full 
control  of  the  traffic  situation.  The  early  development, 
of  course,  brought  about  a  more  or  less  settled  condi- 
tion with  respect  to  the  relationship  in  rates  between 
cities  in  a  given  section  and  other  cities  in  that  section. 
This  adjustment,  which  was  effected  long  ago,  was 
brought  about  because  of  the  competition  of  the  various 
markets  for  the  trade  of  Atlanta  and  the  competition 
of  tlie  carriers  for  the  traffic.     As  a  result,  the  rates 

'See  Map  5,  Atlas  of  Traffic  Maps. 

141 


142        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

from  Louisville,  Ky.,  are  made  the  same  as  tlie 
water-and-rail  rates  from  Baltimore,  Md.,  on  the  first 
six  classes.  The  lettered  classes  have  not  been  equal- 
ized, for  the  reason  that  the  competition  between  the 
eastern  and  the  western  markets  for  the  trade  at  Atlanta 
is  in  articles  which  move  under  the  numbered  classes. 
Few  of  the  commodities  moving  under  the  lettered 
classes  are  produced  in  large  quantities  in  the  East. 

The  equalization  of  rates  is  still  further  accounted 
for  by  the  fact  that  by  water  and  rail  the  distances  from 
Baltimore  to  Atlanta  and  from  Louisville  to  Atlanta 
were  the  same  at  that  time.  The  prorating  mileage 
from  Louisville  to  Chattanooga  was  336  miles,  and 
from  Chattanooga  to  Atlanta  138  miles,  making  a  total 
of  474  miles  from  Louisville  to  Atlanta.  The  ocean 
carriers  plying  between  Baltimore  and  Savannah  had 
a  constructive  or  prorating  mileage  between  those 
points  of  179  miles;  adding  to  this  the  short-line  dis- 
tance of  295  miles  from  Savannah  to  Atlanta  made  a 
distance  of  474  miles,  which  was  exactly  the  same  as 
that  from  Louisville.  The  constructive  water  mileage 
from  Baltimore  to  Savannah  is  now  250  miles. 

Originally  the  measure  of  the  rates  from  the  East 
to  Atlanta,  the  difference  in  the  transportation  condi- 
tions considered,  was  approximately  the  equivalent  of 
the  water  rates  to  Savannah,  Brunswdck,  or  Charles- 
ton, and  the  rail  rates  inland.  In  other  words,  the 
rail  lines  met  the  competition  of  the  water  routes 
operating  through  any  of  the  South  Atlantic  Ports. 
The  demands  of  Atlanta,  however,  in  the  way  of  com- 
petition mth  other  cities  in  its  section,  combined  mth 
the  struggle  betw^een  the  eastern  and  the  western  routes, 
have  reduced  the  rates  beloM^  that  measure.  Early  in 
1905,  there  were  still  further  reductions  brought  about 
by  the  commercial  and  political  interests   of  Atlanta. 


SOUTHEASTERN  TERRITORY  143 

These  reductions  are  also  reflected  in  the  present  rates 
to  various  other  cities  throughout  the  territory. 

As  seen  in  the  intrastate  rates  prescribed  by  the 
several  commissions  in  Southern  Territory,  the  primary 
basis  for  rate  construction  is  the  distance  scale.  The 
rates  increase  as  the  distance  increases  and  that  basis 
is  not  deviated  from  except  where  some  compelling 
influence,  such  as  water  competition  or  market  com- 
petition, intervenes  and  causes  a  departure  from  it. 
Thus,  assuming  that  there  is  a  single  line  of  railroad 
from  Baltimore  to  New  Orleans  with  no  competitive 
influence,  the  rates  would  be  constructed  on  an  ascend- 
ing scale,  reaching  its  zenith  at  New  Orleans.  However, 
as  there  is  actual  water  competition  between  these 
ports,  the  rates  are  depressed,  not  only  between  the 
port  cities  themselves,  but  as  far  inland  as  a  combina- 
tion of  rates  to  and  from  the  port  cities  works  into  the 
interior  to  defeat  the  normal  all-rail  basis;  the  rates 
so  established  must  be  met  by  the  all-rail  lines  if  they 
are  to  participate  in  the  traffic  to  such  points. 

2.     DlPFEKENTIAL   ADJUSTMENTS 

Another  factor  that  played  no  small  part  in  the 
present  adjustment  was  the  competition  of  the  various 
kinds  of  routes — that  of  the  all-water  lines  with  the 
water-and-rail  lines,  the  water-and-rail  lines  with  the 
all-rail  lines,  and  so  forth.  On  the  accompanying  map 
are  indicated  some  of  the  more  important  routes  that 
could  participate  in  the  movement  of  freight  from  New 
York,  N.  Y.,  to  Troy,  Ala.,  from  which  it  is  apparent 
that  all  of  the  eastern  lines  are  in  competition  for  traf- 
fic to  this  territory. 

Prior  to  the  establishment  of  agreements  between 
the  rail  carriers  and  the  water  lines,  some  very  dis- 


144        FREIGHT  RATES :  SOUTHERN  TERRITORY 

astrous  rate  wars  v/ere  engaged  in,  which  resulted  in 
good  to  no  one.  These  wars  were  disposed  of  to  a  great 
extent,  however,  when  the  differential  routes,  all  water 


and  rail-and-water,  from  the  East  were  conceded  dif- 
ferentials under  the  all-rail  rates  by  the  all-rail  lines 
to  points  in  competitive  territory.  These  differential 
routes  are  occasionally  termed  the  rate-making  routes. 


SOUTHEASTERN  TERRITORY  145 

(a)  Via  South  Atlantic  Ports 

The  rates  to  points  in  Southeastern  Territory,  via 
the  rail-and-water  routes,  are  usually  the  following 
differentials  less  than  the  all-rail  rates : 

Classes 1       2     3456     A      B      C     D     EH      F 

Differentials..   12     10    98655      5      5      5      6      8      10 

{b)  Via  Gulf  Ports 

In  so  far  as  coastwise  traffic  via  Gulf  ports  to  South- 
eastern Territory  is  concerned,  the  Mallory  Steamship 
Company,  operating  between  New  York  and  Mobile, 
Ala.,  is  the  controlling  factor.  Within  a  considerable 
radius  of  Mobile  and  Pensacola,  Fla.,  combinations  of 
local  rates,  using  the  water-line  rates  to  the  ports  and 
the  rail-line  rates  therefrom,  are  considerably  less  in 
some  instances  than  those  in  effect  via  the  water  routes 
operating  through  the  South  Atlantic  Ports.  On  other 
traffic,  the  Mallory  Steamship  Company  has  been  con- 
ceded differentials  under  the  rail-and-water  rates  of  the 
lines  operating  through  tlie  South  Atlantic  Ports.  The 
present  adjustment  is  as  follows : 

To  all  destinations  on  and  east  of  a  line  drawn  from 
Chattanooga,  Tenn.,  through  Birmingham,  Calera, 
Selma,  and  Montgomery,  Ala.,  to  Pensacola,  Fla.,  the 
following  differentials  less  than  the  standard  rail-and- 
water  rates  apply: 

Classes 123456     A      B      CD     EH      F 

Differentials 54     3     2222       2       2       2       2       2       4 

It  should  be  understood  in  this  connection,  however, 
that  combinations  can  also  be  effected  through  Atlantic 
ports  by  applying  the  water-line  rate  to  the  port  and 
the  rail-line  rate  therefrom,  resulting  in  figures  which 
the  all-rail  lines  do  not  attempt  to  meet. 


146        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

3.    Adjustment  from  New  York  City  via  Water 

AND  Rail 

The  testimony  introduced  in  the  original  long-and- 
short-haiil  investigation  by  the  Interstate  Commerce 
Commission  in  1887  tended  to  show  that  the  first-class 
rate  from  New  Y^'ork  to  Atlanta,  which  at  that  time  was 
$1.14  per  100  pounds,  was  constructed  by  adding 
the  steamship's  proportional  rate,  which  under  its 
tariff  at  that  time  was  45  cents  from  New  York  to 
Savannah,  to  the  rate  authorized  by  the  Georgia  Rail- 
road Commission  from  Savannah  to  Atlanta,  which  was 
69  cents,  producing  a  through  rate  of  $1.14  from  New 
York  to  Atlanta.  The  45-cent  steamship  rate  plus  the 
Georgia  Commission  rate  of  64  cents  made  a  through 
rate  of  $1.09  from  New  York  to  Macon.  The  steamship 
rate  of  45  cents  plus  the  local  rate  of  51  cents  made 
a  through  rate  of  96  cents  from  New  York  to  Augusta. 
These  rates  were  made  at  that  time  on  the  exact  com- 
bination,^ this  adjustment  having  been  in  effect  since 
April  10,  1884.  The  water-and-rail  rates  from  Balti- 
more, Md.,  and  the  all-rail  rates  from  Louisville,  Ky., 
and  Cincinnati,  Ohio,  were  made  on  the  same  basis 
in  so  far  as  the  numbered  classes  were  concerned.  The 
following  scale  was  effective  for  more  than  twenty 
years : 

Classes 1  2  3  4  5  6 

Rates 107        92        81        68        56        46 

The  following  rates  became  effective  on  February  1, 
1905: 

Classes 1  2  3  4  5  6 

New  York  rates 105  93  83  68  56  44 

Baltimore  rates 98  87  78  63  62  41 

Louisville  rates 98  87  78  63  52  41 

Cincinnati  rates 98  87  78  63  52  41 

New  Orleans  rates 94  83  74  59  48  37 

>1  I.  C.  C.  Rep.,  78. 


SOUTHEASTERN  TERRITORY  147 

The  reduction  in  rates  to  Atlanta  thus  established 
was  brought  about  not  by  any  increase  in  the  competi- 
tion of  rail  or  rail-and-water  rates  but  was  the  result 
of  a  compromise  between  the  carriers  on  the  one  hand 
and  the  Railroad  Commission  of  the  state  of  Georgia, 
the  Atlanta  Freight  Bureau,  and  the  municipal  authori- 
ties of  the  city  of  Atlanta  on  the  other.  In  the  opinion 
of  the  Interstate  Commerce  Commission  in  the  case  of 
the  Morgan  Grain  Company  v.  A.  C.  L.  Ry.  Co.,^  the 
circumstances  surrounding  the  adjustment  of  rates  to 
Atlanta  in  1905  are  described  in  detail  and  the  conclu- 
sion of  the  Commission  is  expressed  as  follows: 

The  evidence  is  clear  that  the  charges  in  each  of  the  com- 
plaints that  the  Atlanta  reductions  of  February  1,  1905,  were 
voluntarily  accorded  by  the  railroad  companies  and  that  the 
latter  agreed  that  the  reduced  rates  were  just,  reasonable,  and 
compensatory  have  not  been  sustained,  and  that  the  reductions 
were  the  result  of  an  adjustment  or  compromise  made  by  the 
carriers  in  view  of  conditions  prior  to  February  1,  1905,  and 
not  of  their  free  choice. 

The  present  rates  to  Atlanta,  therefore,  cannot  be 
looked  upon  as  voluntary  rates  nor  can  they  be  looked 
upon  as  rates  resulting  from  competition.  The  reduc- 
tions that  took  place  in  1905  from  West  and  East  were 
9,  5,  3,  5,  4,  and  5  cents  per  100  pounds  on  Classes 
1  to  6,  respectively.  These  reductions  in  rates  to 
Atlanta,  already  relatively  low,  resulted  in  propor- 
tionate reductions  in  the  rates  to  Columbus,  Macon, 
Augusta,  Rome,  Athens,  Dalton,  Cedartown,  Carters- 
ville,  Cordele,  Americus,  Albany,  and  many  other 
places.  This  necessarily  brought  about  considerable 
shrinkage  in  the  revenue  of  these  carriers  on  inter- 
state business  hauled  to  these  points. 

319  I.  C.  C.  Rep.,  460. 


148        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

The  rates  originally  established  from  New  York 
to  Atlanta  "\da  the  South  Atlantic  Ports  were  naturally 
equalized  by  the  rail-and-water  lines  operating  through 
the  Virginia  Ports  and  were,  soon  after  their  estab- 
lishment, applied  as  maxima  to  intermediate  points. 
The  provisions  of  the  fourth  section  were  observed 
by  these  lines.  Such,  however,  was  not  the  case  with 
the  lines  operating  through  the  ports  of  Charleston  and 
Savannah,  although  the  lines  so  operating  are  the  most 
direct  of  any  which  serve  Atlanta  from  New  l^ork. 

Subsequently,  upon  the  adoption  of  the  reduced  basis 
of  rates  to  Atlanta,  the  lines  serving  the  Virginia 
Ports  via  their  routes  maintained  rates  to  intermediate 
points  which  were  upon  a  higher  scale  than  that  to 
Atlanta.  The  privilege  to  continue  this  adjustment, 
however,  has  been  denied,  as  will  be  indicated  in  the 
synopsis  of  the  Commission's  order,  in  so  far  as  rates 
involved  in  the  adjustment  prescribed  in  this  chapter 
are  concerned. 

The  basis  for  the  rates  to  Atlanta  being  thus  arrived 
at,  rates  to  other  destinations  in  Southeastern  Territory 
are  made  in  many  cases  with  relation  to  these  rates, 
as  is  indicated  in  the  bases  for  rate  construction  set 
forth  in  Table  31. 

TABLEfSl 

Bases  for  Rate  Construction  from  New  York,  N.  Y.,  to 
Southern  Common  Points 


From 

NewYork,N.Y., 

To 

Rate  Basis  Applicable 

Anniston,  Ala 

Same  as  original  or  standard  rates  to  Atlanta,  Ga. 

Augusta,  Ga 

Agreed    rates    made    on    Savannah    combination,    using    the    water 
rate  to  Savannah  and  the  rail  rate  beyond 

Birmingham,  Ala.  .  . 

Same  as  the  original  or  standard  rates  to  Atlanta,  Ga. 

Chattanooga,  Tenn.     All-rail  and  rail-and-water  rates  are  the  same  as  those  to  Atlanta, 
Ga.,  via  rail  and  water 

SOUTHEASTERN  TERRITORY 


149 


TABLE  31— Continued 

Bases  for  Rate  Construction  from  New  York,  N.  Y.,  to 
Southern  Common  Points 


From 

New  York,  N.Y., 

To 

Rate  Basis  Applicable 

Cordova,  Ala ( 

Jasper,  Ala ( 

The  following  differentials  higher  than  the  rail-and-water  rates    to 

Birmingham,  Ala.: 

Classes 123456ABCDEHF 

Differentials.  ..    24  20  18   16   14  12  12  12    7     6    14   16  14 

with   maximum   Ohio   River  combination  or  Columbus,   Miss. , 

rates 

Demopolis,  Ala 

The  following  differentials  higher  than  the  rates  to  Selma,  Ala.: 

Classes 123456ABCDEHF 

Differentials...    10    865444444448 
with  lowest  combination  as  marimum 

Dothan,  Ala J 

Ozark,  Ala •  V 

Troy,  Ala ) 

The  following  differentials  higher  than  the  rates  to  Montgomery,  Ala. : 

Classes 123456ABCDEHF 

Differentials...    12   10    8886655568    10 

Gadsden,  Ala 

Same  as  original  or  standard  rates  to  Rome,  Ga. 

Huntsville,  Ala 

2    cents    per    100    pounds    higher    than    the    original    or  standard 
rates  to  Chattanooga,  Tenn. 

Macon,  Ga 

The  following  differentials  less  than  the  rates  to  Atlanta,  Ga.: 

Classes 1234     56ABCDEHF 

Differentials  ...32221      1215562    10 

Montgomery,  Ala.  i 

Selma,  Ala > 

OpeUka,  Ala ) 

The  following  differentials  over  the  rates  to  Atlanta,  Ga.: 

Classes 123456ABCDEHF 

Differentials  ...3211110000000 

Tuscaloosa,  Ala .... 

The  same  rates  as  to  Columbus,  Miss.,  subject  to  the  lowest  com- 
bination as  a  maximum 

Valdosta,  Ga 1 

Waycross,  Ga  .  .  .  .  ( 

The  same  rates  as  to  Albany,  Ga.,  but  not  in  excess  of  the  actual 
combination  through  South  Atlantic  Ports 

Slight  variations  in  some  of  the  classes  may  be  noted. 
This  may  be  attributed  to  the  fact  that  in  some  cases 
the  Interstate  Commerce  Commission  has  ordered  read- 
justments in  interstate  rates  and  the  bases  have  not 
been  revised  in  accordance  therewith.  This  is  due  to 
the  fact  that  the  carriers  have  held  the  readjustments 
in  abeyance  until  the  effect  of  the  compliance  with  the 
Interstate  Commerce  Commission's  order  as  to  the 
petition  of  these  carriers  to  violate  the  fourth  section 
of  the  Act  to  Regulate  Commerce  can  be  determined.  In 
such  cases,  however,  a  modification  of  the  differentials 
to  accord  with  the  existing  rates  is  all  that  will  be 
necessary. 


150        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Although  the  rates  to  quite  a  number  of  other  base 
and  common  points  of  the  South  are  constructed  in  the 
same  way  as  to  the  points  indicated  in  Table  31,  it  has 
seemed  desirable  to  arrange  these  alphabetically  in  a 
separate  table  rather  than  to  include  them  in  Table  31. 
Accordingly,  in  Table  32  will  be  found  a  list  of  such 
points;  also  the  base  rate  that  is  to  be  applied  in  each 
case.  Assuming,  for  example,  that  it  is  desired  to 
construct  the  rates  to  New  Decatur,  Ala.,  Table  32  indi- 
cates that  the  Huntsville  basis  is  to  be  applied; 
referring  to  Table  31,  we  find  that  the  rates  to  Hunts- 
ville are   to   be   constructed   2   cents   per   100  pounds 


TABLE|32 

Other  Common  Points  Taking  the  Same  Bases  of  Rates  as 
Those  to  Points  Shown  in  Table  31 


Fbom  New  York, 

N.  Y., 

Apply  Same  Rates 

AS 

TO 

Shown  in  Table  31 

TO 

Alabama  City 

Ala. 

Gadsden 

..Ala. 

Albany 

Ga. 

Americus 

.  ..Ga. 

Americus 

(1 

Columbus 

u 

Asylum 

u 

Macon 

u 

Athens 

ti 

Atlanta 

u 

Attalla 

Ala. 

Birmingham 

..Ala. 

Avondale 

u 

« 

« 

Bessemer 

u 

u 

u 

Boyce 

Tenn. 

Chattanooga* 

.Tenn 

Boyles 

Ala. 

Birmingham 

..Ala. 

Cartersville 

Ga. 

Rome 

.  ..Ga. 

Cedartown 

tl 

u 

« 

Chattahoochee 

U 

Atlanta 

u 

Citico 

Tenn. 

Chattanooga* 

.tenn. 

Cordele 

Ga. 

Americus 

.  ..Ga. 

Dalton 

<i 

Atlanta 

u 

Dawson 

(1 

Eufaula 

..Ala. 

Decatur 

Ala. 

Huntsville 

(1 

Dublin 

Ga. 

Hawkinsville 

.  ..Ga. 

East  Birmingham .  .  .  . 

Ala. 

Birmingham 

.  Ala. 

East  Point 

Ga. 

Atlanta 

.  ..Ga. 

Elberton 

a 

a 

« 

Ensley 

Ala. 

Birmingham 

..Ala. 

Euf  aula 

u 

Columbus 

.  ..Ga. 

Fitzgerald 

Ga. 

Albany 

« 

Florence 

Ala. 

Huntsville 

.  .Ala. 

SOUTHEASTERN  TERRITORY 


151 


TABLE  32— Continued 

Other  Common  Points  Taking  the  Same  Bases  of  Rates  as 
Those  to  Points  Shown  in  Table  31 


From  New  York,  N.  Y., 

TO 


Apply  Same  Rates  as 
Shown  in  Table  31  to 


Ft.  McPherson Ga. 

Gainesville " 

Gate  City Ala. 

Grasselli " 

Hapeville Ga. 

Harriman Tenn. 

Harriman  Jet " 

Hawkinsville Ga. 

Irondale Ala. 

Jasper " 

LaGrange Ga. 

Lindale " 

Milledgeville " 

New  Decatur Ala. 

North  Birmingham " 

Oxmoor " 

Ozark " 

Pratt  City " 

Quitman Ga. 

Rome " 

Ruffner Ala. 

Sheffield " 

State  Farm Ga. 

Thomas Ala. 

Thomasville Ga. 

Tif ton " 

Tuscumbia Ala. 

Vienna " 

Washington " 

West  Point " 

Wheeling " 

Woodlawn " 

Woodward " 


Atlanta Ga. 

U  (I 

Birmingham Ala. 

li  u 

Atlanta Ga. 

Chattanooga^ Tenn. 

U  11 

Macon Ga. 

Birmingham Ala. 

Cordova Ga. 

Atlanta " 

Rome " 

Macon " 

Huntsville Ala. 

Birmingham " 

Dothan " 

Birmingham " 

Albany Ga. 

Atlanta " 

Birmingham Ala. 

Huntsville " 

Macon Ga. 

Birmingham Ala. 

Albany Ga. 

(1  (1 

Huntsville Ala. 

Cordele « 

Elberton ' " 

Opelika Ala. 

Birmingham " 


^Ohio  River  combination  not  to  be  exceeded. 

higher  than  the  original  standard  rates  to  Chattanooga, 
Tenn.,  which  are  shown  in  Table  33.  Adding  this  dif- 
ferential to  the  various  classes  gives  the  following  as 
the  rates  currently  applicable  to  New  Decatur,  Ala. : 

Classes  .12       3456ABCDEHF 
Rates  .  .    116  100    88    75    62    51     38    50    42    41     60    70    82 

In  Table  33  are  given  the  rates  currently  in  effect 
from   New  York  to   the   more   important   base   points 


152        FREIGHT  BATES :  SOUTHERN  TERRITORY 

throughout  the  South  applicable  in  connection  with  the 
rail-and-water  routes.  In  connection  with  this  feature 
of  the  treatise,  however,  attention  is  directed  to  the 
unsettled  condition  of  rates  in  this  territory;  in  case  of 
the  actual  use  of  these  rates,  they  should  be  confirmed 
by   inquiry   through    interested    lines. 


TABLE  33 

General  Adjustment  of  Rail-and- Water  Rates  from  New 
York,  N.  Y.,  to  Southern  Common  Points 


From 
New  York,  N.  Y., 
To 

Rates  in  Cents  per  100  Pounds  Except 
AS  Noted 

Classes^ 
1       2      3      456ABCDEHF2 

Albany,  Ga 

105     93     83  G8  56  44  36  48  40  39  58  60  78 

Americus,  Ga 

105     93     83  68  56  44  36  48  40  39  58  60  78 

Anniston,  Ala 

114     98     86  73  60  49  36  48  40  39  58  68  78 

Atlanta,  Ga.' 

114     98    86  73  60  49  36  48  40  39  58  68  78 

u               u 

105     93     83  68  56  44  36  48  40  39  58  60  78 

Augusta,  Ga 

96     81     70  58  47  37  28  42  32  31  43  54  61 

Birmingham,  Ala .  .  . 

Chattanooga,  Tenn 

Columbus,  Ga 

Columbus,  Miss 

114     98     86  73  60  49  36  48  40  39  58  68  78 
105     93     83  68  56  44  36  48  40  39  58  60  78 
105     93     83  68  56  44  36  48  40  39  58  60  78 
138  120  102  83  70  58  52  58  47  47  61  74  94 

Cordele,  Ga 

Cordova,  Ala 

Demopolis,  Ala 

Dothan,  Ala 

Elberton,  Ga 

Eufaula,  Ala 

Gadsden,  Ala 

105     93     83  68  56  44  36  48  40  39  58  60  78 
138  118  102  78  66  52  48  53  45  41  61  70  82 
118  103     90  74  61  49  40  52  44  40  62  67  80 
120  105     92  77  65  51  42  53  45  44  64  76  88 
105     93     83  68  56  44  36  48  40  39  58  60  78 
105     93     83  68  56  44  36  48  40  39  58  60  78 
114    98     86  73  60  49  36  48  40  39  58  68  78 

Hawkinsville,  Ga 

Huntsville,  Ala 

Macon,  Ga.  .  . 

102     91     81  66  55  43  34  47  35  34  52  58  68 
116  100     88  75  62  51  38  50  42  41  60  70  82 
102     91     81  66  55  43  34  47  35  34  52  58  68 

Montgomery,  Ala 

Opelika,  Ala 

Rome,  Ga 

108     95     84  69  57  45  36  48  40  39  58  68  78 
108     95     84  69  57  45  36  48  40  39  58  68  78 
105     93     83  68  56  44  36  48  40  39  58  60  78 

Selma,  Ala 

108     95     84  69  57  45  36  48  40  39  58  68  78 

Tuscaloosa,  Ala 

138  120  102  83  70  58  51  56  47  42  61  65  88 

'Governed  by  the  Southern  Classification. 

'Per  barrel. 

'These  rates  are  known  as  the  original  or  standard  rates  and  are  not  appli- 
cable on  traffic  to  Atlanta.  They  are  reproduced  only  as  a  matter  of 
information. 


SOUTHEASTERN  TERRITORY 


153 


(a)   Commodity  Rates 

In  Table  34  is  shown  a  representative  line  of  com- 
modity rates  applicable  from  New  York,  N.  Y.,  to  At- 
lanta, Ga.,  via  rail-and-water  routes.  Rates  from  other 
points  of  origin  or  to  other  points  of  destination  are 
usually  arrived  at  by  adding  the  corresponding  class 
differential  to  the  base  rate  or  deducting  the  differential 
from  the  base  rate.  Thus,  assume  that  it  is  desired 
to  construct  the  rate  on  bagging  to  Montgomery,  Ala., 
bagging  (in  carloads)  being  classified  at  sixth  class  in 
the  Southern  Classification.  Reference  to  Table  31  indi- 
cates that  the  sixth-class  rate  to  Montgomery,  Ala.,  is 
1  cent  per  100  pounds  higher  than  the  rate  to  Atlanta. 
Therefore,  the  rate  on  bagging  would  be  made  by 
adding  1  cent  to  the  Atlanta  rate,  producing  33  cents 
as  the  rate  applicable  to  Montgomery,  Ala. 


TABLE  34 
Commodity  Rates  from  New  York,  N.  Y.,  to  Atlanta,  Ga. 


Commodities 


Rates  in 

Cents 

PER   100 

Pounds 

Except  as 

Noted 


Agricultural  implements,  C.  L.,  min.  wt.  20,000  lbs.,  viz.: 

Corn  planters,  cotton  choppers,  cotton  planters,  cultivators, 
field  rollers,  grain  drills,  guano  distributors,  harrows, 
plows,  potato  diggers,  potato  planters,  seed  sowers  (not 
hand),  stalk  cutters  (field),  transplanters,  and  parts 
thereof  when  shipped  in  carloads  with  implements  named 
Asphalt  (asphaltum),  natural  or  by  product,  solid,  C.  L.,  min. 
wt.  40,000  lbs.,  and  liquid  other  than  paint,  stain,  or 
varnish,  in  barrels  or  iron  drums,  min.  wt.  40,000  lbs.  .  .  . 
Cement,  portland  or  natural,  in  barrels  or  sacks,  C.  L.,  min.  wt. 

40,000  lbs.,  in  cents  per  ton  of  2,000  lbs 

Food  preparation,  viz.: 

Oatmeal,  rolled  oats,  roUed,  cracked,  crushed,  or  flaked 
wheat,  flaked  rye,  flaked,  rolled,  and  pearl  barley,  hominy 
grits,  and  flaked  hominy,  packed  or  in  barrels,  kegs,  drums, 
half  barrels,  or  in  cotton  or  gunnv  sacks: 

C.  L 

L.  C.  L 


38 

27 
17 


33 
40 


154        FREIGHT  RATES :  SOUTHERN  TERRITORY 


TABLE  34— Continued 
Commodity  Rates  from  New  York,  N.  Y.,  to  Atlanta,  Ga. 


Commodities 


Iron  and  steel  articles  :|J    rii        ^=-'1 

fe  I  Rails,  C.  L.,|min.  wt.^.20Jgros^2ton 

I^i  Railroad  track|material,  viz.: 

f'^Ji  Chairs,  cross  ties,  clamps,  or  fastenings;  frog  fillings, 
frogs  nut  locks  and  spikes,  splice  bars,  switch  chains, 
switches,  switch  stands,  tie  plates,  track  bolts,  track 

braces,  track  nuts,  washers,  C.  L.,  per  gross  ton 

Leather  sole,  in  boxes,  rolls,  or  burlapped  bales,  L.  C.  L 

Pipe  sewer,  min.  wt.  30,000  lbs 

Plaster,  wall,  building,  moulding,  fancy,  and  decorating,  all 
kinds,  (including  plaster  of  paris)  and  ground  gypsum 
rock,  C.  L.,  min.  wt.  60,000  lbs.,  but  not  in  excess  of 

marked  capacity  of  car 

Soap  and  washing  powders,  any  quantity 

Soap,  in  boxes  or  barrels,  agreed  to  be  of  value  of  not  exceeding 
5  cents  per  pound  and  so  expressed  in  bills  of  lading, 

C.  L.,  min.  wt.  30,000  lbs 

L.  C.  L 

Starch,  C.  L.,  min.  wt.  30,000  lbs 

Tar  and  pitch,  C.  L.,  min.  wt.  40,000  lbs 

Wool,  C.  L 


Rates  in 
Cents 
PER  100 
Pounds 
Except  as 
Noted 


744  - 


744 
68 
22 


27 
30 


30 
30 
36 
28 
63 


4.    Adjustment  from  Points  Related  to  Atlanta,  Ga. 

The  important  cities  within  the  sub-territory*  of  the 
western  lines  are  Huntsville,  Florence,  Decatur,  Bir- 
mingham, Montgomery,  and  Selma.  These  cities  have 
adjustments  from  the  West  which  do  not  directly 
hinge  upon  the  corresponding  rates  to  Atlanta,  although 
the  rates  themselves  often  reflect  the  conditions  found  at 
the  latter  city. 

From  the  East,  however,  there  has  always  been  a 
definite  relationship  between  the  cities  just  spoken  of 


^Montgomery  Sub-Territory.     See  Map  5,  Atlas  of  Traffic  Maps. 


SOUTHEASTEEN  TERRITORY  155 

and  Atlanta.  Thus,  for  example,  should  there  be  a 
reduction  in  the  first-class  rate  from  an  Ohio  River 
Crossing  or  a  Mississippi  River  Crossing,  or  from  one 
of  the  Eastern  Cities  or  Virginia  Cities  to  Atlanta  or 
to  any  other  important  jobbing  center  of  the  southeast, 
like  reductions  would  occur  at  practically  all  of  these 
terminal  cities,  which  would  be  followed,  as  will  be  ex- 
plained, by  reductions  at  nearly  all  other  destinations, 
local  or  junction. 

5.    Adjustment  to  Local  Points 

In  connection  with  the  development  of  the  southern 
rate  structure,  while  the  interested  carriers  have  gen- 
erally met  the  competitive  influences  as  they  existed  at 
common  points,  it  has  been  the  policy  to  hold  inter- 
mediate points  or  local  points  on  a  somewhat  higher 
basis  than  that  which  applies  to  the  common  points, 
the  rate  to  the  base  point  being  employed  even  if  it 
be  more  distant  than  the  local  rate  from  the  base  point 
to  the  final  destination.  This  resulted  in  the  celebrated 
long-and-short-haul  clause,  in  regard  to  which  the  Inter- 
state Commerce  Commission  has  but  recently  announced 
its  decision.^  In  general,  this  decision  has  sustained  the 
policy  of  the  carriers,  although  prohibiting  the  con- 
tinuance of  rates  to  intermediate  points  which  are  on  a 
higher  basis  than  the  rates  to  the  common  points  plus 
the  local  rates  back  to  destination.  Concerning  this 
feature,  the  Interstate  Commerce  Commission,  in  an- 
other case,  stated  as  follows : 

Whatever  may  be  said  in  justification  of  the  basing-point 
system,  we  do  not  think  that  the  basing-point  system  itself 

»30  I.  C.  C.  Rep.,  153,  336. 


156        FREIGHT  RATES :  SOUTHERN  TERRITORY 

necessarily  requires  that  joint  through  rates  over  long  distances 
to  local  or  noncompetitive  points  should  now  be  made  by  adding 
to  the  basing-point  rates  either  the  full  locals  or  high  differentials. 
Stated  in  other  words,  for  fear  of  misapprehension,  we  do  not 
wish  to  be  understood  as  passing  upon  the  reasonableness  of 
the  local  rates  from  the  various  basing  points  to  points  of 
ultimate  destination  when  applied  to  local  service;  neither  do 
we  wish  to  be  understood  as  condemning  the  application  of 
differentials  lower  than  such  locals  in  the  making  of  joint  through 
rates  beyond  or  intermediate  to  such  basing  points;  what  we 
do  say  is:  that,  in  the  making  of  joint  through  rates  on  long- 
distance traffic,  to  local  or  noncompetitive  points,  the  differ- 
entials above  the  rates  to  the  basing  points  should  bear  some 
reasonable  relation  to  the  total  distances  involved;  and  that 
where  the  long-haul  traffic  to  local  stations  is  meager  these 
differentials  may  perhaps  be  higher  than  otherwise  they  would 
be." 


Inasmuch  as  the  Commission's  order  in  regard  to 
the  fourth  section  violations  in  this  territory  affects 
principally  the  local  points  throughout  the  South,  con- 
siderable attention  should  be  given  to  it  with  respect 
to  sucli  points  as  are  discussed  in  this  chapter.  Al- 
though this  order,  which  is  reproduced  in  substance 
in  Appendix  A  of  these  treatises,  will  cause  some  depar- 
ture from  the  present  basis,  indicated  in  Table  35,  it 
has  seemed  desirable  to  give  the  basis  in  use  at  the 
present  time  for  two  reasons:  (1)  Some  time  may 
elapse  before  the  federal  order  can  be  complied  with 
and  (2)  an  understanding  of  the  present  method  of  rate- 
making  is  necessary  in  order  to  appreciate  the  full 
force  of  the  reduction  ordered. 

In  Table  35  is  given  the  present  basis  employed  in 
establishing  the  local  rates  to  some  of  the  divisions  of 
the  various  railroads  in  the  South. 

•28  I.  C.  C.  Rep.,  154,  172. 


SOUTHEASTERN  TERRITORY 


157 


TABLE  35 

Bases  for  Rates  from  New  York,  N.  Y.,  to  Local  Stations 
IN  Southeastern  Territory 


To  Intermediate  Points  Located  on  the  Following  Lines 


Atlantic  Coast  Line  Railroad: 
West  of  Savannah  in  Georgia . 
Local  stations  in  Alabama .  .  . 


Central  of  Georgia  Railway: 

North  of  Macon,  Ga.,  to  Atlanta,  Ga.,  and  Chattanooga,  Tenn., 
and  west  of  Macon  to  Columbus,  Ga.,  and  Eufaula,  Ala., 
and  between  Smithville,  Ga.,  and  Columbia,  Ala 

Between  Gordon,  Ga.,  and  Covington,  Ga 

To  stations  between  Eufaula,  Ala.,  and  Montgomery,  Ala.; 
Columbus,  Ga.,  and  Hurtsboro,  Ala 

To  stations  between  Eufaula,  Ala.,  and  Ozark,  Ala.,  and  between 
Columbus,  Ga.,  and  Andalusia,  Ala.;  Dothan,  Ala.,  and 
Lakewood,  Fla 

To  stations  between  Columbus,  Ga.,  and  Opelika,  Ala 

To  stations  between  Opehka,  Ala.,  and  Birmingham,  Ala 

Seaboard  Air  Line  Railway : 

Between  Atlanta,  Ga.,  and  Greenwood,  S.  C 

Southern  Railway: 

Between  Seneca,  S.  C,  and  Atlanta,  Ga.,  including  Athens 
branch  and  between  Atlanta,  Ga.,  and  Chattanooga,  Tenn. 

Between  Austell,  Ga.,  and  Birmingham,  Ala 

Between  Toccoa,  Ga.,  and  Elberton,  Ga 

To  other  intermediate  points 


Rate 
Basis 
Appli- 
cable 


Note  1 
Note  2 


Notes 
Note  4 

Note  5 


Note  6 

Note  7 
Note  8 

Note  9 

Note  10 
Note  11 
Note  12 
Note  13 

Note  1.  The  rates  are  made  with  regard  to  those  to  the  junction  points, 
but  not  in  excess  of  the  combination  of  rates  to  and  from  the  ports.  The 
present-day  differences  as  compared  with  the  common  point  show  that  the 
rates  to  intermediate  points  are  the  following  differentials  higher  than  the 
rates  to  the  junction  points: 


Classes 

.12     3     4     5     6 

A 

B 

C 

D 

E 

H 

F 

Differentials.  . 

.995544 

2 

0 

0 

0 

6 

6 

0 

Note  2.  To  local  stations  on  the  same  railroad  in  Alabama,  the  rates  are 
the  following  differentials  higher  than  the  rates  to  Montgomery: 

Classes 123      4      5      6ABCDEHF 

Differentials  22  19  17     16     14     12     12     10     10      5      12     14     20 

Note  3.  To  local  stations  on  the  Central  of  Georgia  Railway,  north  of 
Macon,  Ga.,  to  Atlanta,  Ga.,  and  Chattanooga,  Tenn.,  west  of  Macon,  Ga., 
to  Columbus,  Ga.,  and  Eufaula,  Ala.,  and  between  Smithville,   Ga.,  and 


158        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Columbia,  Ala.,  rates  are  made  on  the  combination  but  not  to  exceed  a 
blanket  scale  of  rates,  which  is  not  greatly  in  excess  of  the  rates  to  the  more 
important  basing  points. 

Note  4.     The  rates  to  Covington,  Ga.,  are  maxima. 

Note  5.  Combination  rates  are  not  to  exceed  those  currently  in  effect 
to  Union  Springs,  Ala. 

Note  6.  Rates  are  not  to  exceed  the  following  differentials  over  the 
rates  to  Montgomery,  Ala. : 

Classes  ....123  4      5      6ABCDEHF 

Differentials  22  19  17  16     14     12     12     10     10      5      12     14     20 

Note  7.  To  stations  between  Columbus,  Ga.,  and  Opelika,  Ala.,  the 
rates,  prior  to  February  1,  1905,  were  on  the  Opelika  scale,  but  when  the 
rates  to  Opelika  were  reduced  on  the  date  specified,  no  change  was  made 
in  the  intermediate  rates. 

Note  8.  Rates  are  not  to  exceed  those  currently  in  effect  to  Sylacauga 
and  Childersburg,  Ala. 

Note  9.  To  stations  on  the  Seaboard  Air  Line  Railway,  between  At- 
lanta, Ga.,  and  Greenwood,  S.  C,  the  general  basis  was  the  same  as  that  to 
Atlanta,  but  when  the  rates  to  Atlanta,  which  became  effective  February  1, 
1905,  were  reduced,  no  change  was  made  in  the  rates  to  these  stations. 

Note  10.  Chattanooga  rates  in  effe.'t  prior  to  February  1,  1905,  are 
maxima. 

Note  11.  The  rates  are  not  to  exceed  those  made  by  the  Central  of 
Georgia  Railway  to  Leeds,  Ala. 

Note  12.     The   rates   are   the   following  differentials   higher   than   the 
Toccoa  rates: 

Classes .......   1     23456     A  B       C      DE      HF 

Differentials...   4444333  3      2^2       3       4       5 

Note  13.     The  rates  are  made  on  the  lowest  combination. 


6.    Current  Rates  Illustrative  of  Present 

Adjustment 

{a)  To  Memphis,  Tenn.,  and  Intermediate  Points 

Taking  the  route  formed  by  the  Norfolk  and  Western 
Railway  and  the  Southern  Railway  from  Bristol,  Tenn.- 
Va.,  to  Memphis,  Tenn.,  the  rates  to  the  more  important 
points  as  well  as  to  some  of  the  local  points  are  indi- 
cated in  Table  36. 


SOUTHEASTERN  TERRITORY 


159 


TABLE  36 

Class   Rates   from   New  York,  N.  Y.,  to  Memphis, Tenn., 

AND    Intermediate  Points 


From 

New  York,  N.  Y., 

TO 

Rates  in  Cents  per  100  Pounds  Except  as 
Noted 

Classes' 
1         2      3       456ABCDEHF' 

Bristol,  Tenn.-Va.' 

Bluff  City,  Tenn 

Johnston  City,  Tenn. 

C.  L 

L.  C.  L 

Morristown,  Tenn 

Knoxville,  Tenn 

Chattanooga,  Tenn 

Huntsville,  Ala 

Decatur,  Ala 

Huntsville,  Ala 

Corinth,  Miss 

Middleton,  Tenn 

Grand  Junction,  Tenn .... 

Memphis,  Tenn.^ 

Nashville,  Tenn..^ 

Clarksville,  Tenn.3  4 

9U     78  60^  42  37  28 
110      95  781  58  51  38  41  39  37  37  57  62  74 

100       85  70     55  48  40  43  45  39  38  58  62  77 
110       95  80     60  53  40  43  45  39  38  58  62  77 
110       95  80     62  55  48  43  45  39  38  58  62  77 
100       85  70     55  48  40  36  40  36  36  48  55  72 
105       93  83     68  56  44  36  48  40  39  58  60  78 
116     100  88     75  62  51  38  50  42  41  60  70  82 
116     100  88     75  62  51  38  50  42  41  60  70  82 
116     100  88     75  62  51  38  50  42  41  60  70  82 
138     120  98     75  63  52  52  52  46  46  61  72  92 
141     121  97     72  60  51  52  52  46  46  61  72  92 
141     121  97     71  59  50  50  50  46  44  59  71  91 

100  85  65     45  38  32 
91       78  60    42  36  31 

101  88  70     50  44  39 

'Governed  by  the  Southern  Classification,  except  as  noted. 

'Per  barrel. 

'Governed  by  the  Official  Classification. 

*Teamtraok  delivery. 

It  will  be  observed  from  Table  36  that  the  rates  to  a 
number  of  the  intermediate  points  exceed  the  rates 
to  Memphis,  Tenn.,  the  most  distant  point  on  this 
selected  route.  The  rates  to  Memphis,  Tenn.,  however, 
may  be  attributed  to  the  competition  of  the  northern 
and  southern  transportation  routes  for  traffic  originat- 
ing at  or  destined  to  points  in  Trans-Missouri  Territor3\ 
In  order  to  compete,  it  is  necessary  that  the  southern 
routes  have  substantially  the  same  rates  to  the  Mis- 
sissippi River  as  their  northern  rivals.  As  explained 
in  the  treatise  devoted  to  the  construction  of  freight 
rates  in  Western  Territory,  to  points  in  Arkansas,  Okla- 
homa, Louisiana,  and  Texas,  and  the  Republic  of  Mexico, 


160        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Memphis  is  conceded  a  differential  under  the  estab- 
lished St.  Louis  rates,  which  in  some  cases  entirely 
offsets  the  difference  between  the  rates  from  the  East 
to  Memphis  and  the  rates  to  St.  Louis.  The  basing 
rates  from  New  York  and  Boston  to  St.  Louis  are  on 
the  117%  scale  in  so  far  as  class  rates  are  concerned, 
as  explained  in  the  treatise  devoted  to  rate  construction 
in  Official  Classification  Territory. 

(b)  To  Jacksonville,  Fla.,  and  Intermediate  Points 

Table  37  sets  forth  the  rates  currently  in  effect  from 
New  York,  N.  Y.,  to  stations  on  the  Atlantic  Coast  Line 
Railroad. 


TABLE  37 

Rates  from  New  York  to  Stations  on  the  Atlantic  Coast 

Line   Railroad   from   Goldsboro,     N.    C,    to 

Jacksonville,  Fla.,  Inclusive 


From 
New  York,  N.  Y., 

TO 

Rates  in  Cents  per  100  Pounds 

Except  as  Noted 

Classes' 
1      23456AB      CDE      HF' 

Goldsboro,  N.  C 

Wilmington,  N.  C 

Selma,  N.  C 

Dunn,  N.  C 

Fayettesville,  N.  C 

Pembroke.  N.  C 

Bennettsville,  S.  C 

Sumter,  S.  C 

Columbia,  S.  C 

Orangeburg,  S.  C 

Charleston,  S.  C 

Denmark,  S.  C 

Barnwell,  S.  C 

Allendale,  S.  C 

Yemassee,  S.  C 

Beaufort,  S.  C^ 

Jacksonville,  Fla 

84  73  61  47  41  32  28  33     32  29  41     47  62 
63  52  43  36  28  19  16  16     16  14  28     29  28 
84  73  61  47  41  32  28  33     32  29  41     47  62 
91  80  67  53  46  36  29  35     34  31  46     53  66 
91  80  67  53  43  30  28  24     23  20  43     43  44 
98  87  74  60  50  39  31  36^  36  31  51§  60  66 
98  87  74  60  50  39  31  36|  36  31  51*  60  66 
98  87  74  60  50  39  31  36^  36  31  5U  60  66 
96  81  70  58  47  37  28  42     32  31  43     54  61 
98  87  74  60  50  39  31  36|  36  31  5U  60  66 
72  60  50  35  29  25  25  23     23  23  32     32  46 
98  87  74  60  50  39  31  36^  36  31  5U  60  66 
98  91  76  62  53  44  31  40*  36  34  5U  60  66 
98  91  76  62  53  44  31  40i  33  34  5U  60  60 
106  93  79  65  51  45  35  40     31  30  49     63  61 
72  60  50  35  29  25  25  23     23  23  32     32  46 
75  63  53  37?31  27  27  25     25  25  34     34  50 

'Governed  by  the  Southern  Classification. 
^Per  barrel. 


SOUTHEASTERN  TERRITORY 


161 


TABLE  38 

Class  Rates  via  Rail  and  Water  from  New  York,  N.  Y,,  to 
Stations  on  the  Southern  Railway,  the  Western 
Railway  of  Alabama,  and  the  Louisville 
&   Nashville   Railroad  from  Dan- 
ville, Va.,  to  Mobile,  Ala. 


From 

New  York,  N.  Y., 

To 


Rates    in    Cbnts    per    100    Pounds    Except 
'-=      AS  Noted 


Classes^ 
3     4     5    6    A    B     C 


D    E    H     F' 


High  Point,  N.  C 

Lexington,  N.  C I 

Salisbury,  N.  C i 

Harrisburg,  N.  C i 

Charlotte,  N.  C * 

Behnont,  N.  C 

Gastonia,  N.  C 

Kings  Mountain,  N.  C.  . 

Blacksburg,  S.  C 

Gaffney,  S.  C 

Cowpens,  S.  C 

Spartanburg,  S.  C 

Duncan,  S.  C 

Greenville,  S.  C 

Liberty,  S.  C 

Seneca,  S.  C 

Madison,  S.  C 

Toccoa,  Ga 

Cornelia,  Ga ( 

Bellton,  Ga i 

Gainesville,  Ga 

Buf ord,  Ga i 

Suwanee,  Ga ) 

Dunwoody,  Ga 

Atlanta,  Ga 

Madras,  Ga 

Newnan,  Ga 

St.  Charles,  Ga 

LaGrange,  Ga 

Gabbettville,  Ga 

West  Point,  Ga 

Cusseta,  Ga 

Opehka,  Ala 

Notasulga,  Ala 

Franklin,  Ala 

Montgomery,  Ala 


89    78    65  51  45  35  29  35  34     29    45  52     66 
91     80    67  53  46  36  29  35  34     31     46  53     66 

91     80     67  53  46  36  29  35  34     31     46  53     66 


103  92 

103  92 

103  92 

103  92 

107  101 

112  98 

114  98 

114  98 

114  98 

114  98 

114  98 

114  98 

114  98 


79  65 
79  65 
79  65 
79  65 
83  67 

85  70 

86  73 
86  73 
86  73 
86  73 
86  73 
86  73 
86  73 


54  43 
54  43 
54  43 
54  43 
56  51 
58  49 
60  49 
60  49 
60  49 
60  49 
60  49 
60  49 
60  49 


33  39 
33  39 
33  39 
33  39 

35  45 

36  47 
36  48 
36  48 
36  48 
36  48 
36  48 
36  48 
36  48 


39  36 

39  36 

39  32 

39  36 

39  38 

40  39 
40  39 
40  39 
40  39 
40  39 
40  39 
40  39 
40  39 


54  66 
54  66 
54  66 
54  66 
58  70 
58  68 
58  68 
58  68 
58  68 
58  68 
58  68 
58  68 
58  68 


75 
75 
75 
75 
75 
76 
78 
78 
78 
78 
78 
78 
78 


114  98  86  73  60  49  36  48  40  39  58  68  78 
105  93  83  68  56  44  36  48  40  39  58  60  78 
114  98  86  73  60  49  36  48  40  39  58  68  78 


118 

102 

90  77  63  52  39  51  42^ 

41 

61  72 

83 

105 

93 

83  68  56  44  36  48  40 

39 

58  60 

78 

131 

116 

104  87  71  56  48  60  47| 

43  i 

73  79 

91 

125 

111 

98  81  67  54  46  55  43 

40 

67  73 

82 

127 

113 

101  84  69  55  47  59  47^ 

45 

71  76 

93 

105 

93 

83  68  56  44  36  48  40 

39 

58  60 

78 

120 

106 

94  77  64  51  42  54  44| 

m 

65  70 

87 

108 

95 

84  69  57  45  36  48  40 

39 

58  68 

78 

130 

115 

102  85  71  56  47  61  49 

47 

73  86 

96 

108 

95 

84  69  57  45  36  48  40 

39 

58  68 

78 

133 

118 

105  87  72  58  48  62  49 

47 

74  87 

96 

143 

127 

112  91  76  61  51  65  51 

49 

78  94 

100 

108 

95 

84  69  57  45  36  48  40 

39 

58  68 

78 

'Governed  by  the  Southern  Classification. 
^Per  barrel. 


162        FREIGHT  RATES :  SOUTHERN  TERRITORY 

In  the  route  selected  for  Table  37  the  influence  of 
water  competition  is  felt  to  a  much  greater  extent  than 
in  the  other  routes,  owing  to  the  close  proximity  of  this 
route  to  the  coast  ports.  The  rates  to  the  first  inland 
point  shown  therein,  viz.,  Goldsboro,  N.  C,  exceed  the 
rates  applied  to  the  most  distant  point,  viz.,  Jackson- 
ville, Fla. 

(c)   To  Gentilly,  La.,  and  Intermediate  Points 

In  Table  38  we  note  a  gradually  ascending  scale  of 
rates  to  local  points  until  Montgomery,  Ala.,  is  reached. 
This  scale  is  broken  into  at  frequent  intervals  by  lower 
rates  to  common  points,  but  it  may  be  taken  as  repre- 
sentative of  any  route  that  might  be  selected  in  this 
territory. 

Upon  reaching  Montgomery  the  publication  of 
through  rates  is  discontinued  and  a  combination  basis 
is  authorized.  In  so  far  as  this  territory  is  concerned, 
the  authorized  combination  is  on  Pensacola,  Fla.,  Mobile, 
Ala.,  Montgomery,  Ala.,  Nashville,  Tenn.,  or  Louisville, 
Ky.,  whichever  produces  the  lowest  basis.  The  rates 
to  these  base  points  from  New  York  are  as  indicated 
in  Table  39. 

TABLE  39 
Basing  Rates  from  New  York,  N.  Y.,  to  Southern  Points 


From 

New  York, 
N.  ¥.,  TO 

Rates 

IN  Cents 

PER 

100  Pounds  Except 

A.S  Noted 

Classes 

1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F» 

Montgomery'' .  . . 

108 

95 

84 

69 

57 

45 

36 

48 

40 

39 

58 

68 

78 

Louisville' 

75 

65 

50 

35 

30 

25 

Mobile' 

100 

85 

69 

54 

46 

39 

Nashville' 

91 

78 

60 

42 

36 

31 

Pensacola' 

75 

65 

55 

45 

40 

35 

'Per  barrel. 

'Governed  by  the  Southern  Classification. 

'Governed  by  the  Official  Classification. 


SOUTHEASTERN  TERRITORY 


163 


Taking  some  of  the  representative  points  on  the  route 
indicated  in  Table  40  between  Montgomery,  Ala.,  and 
Mobile,  the  basing  rates  are  expressed  as  is  indicated 
in  Table  39. 

TABLE  40 

Arbitrary  Adjustment  to  Interior  Alabama,  Mississippi, 

AND  Louisiana  Points 


To  Make  Through 
Rates  to 


Catoma,  Ala. 


Fort  Deposit,  Ala 


Georgiana,  Ala. 


Evergreen,  Ala. 


Flomaton,  Ala . 


Perdido,  Ala. 


Hurricane,  Ala. 


Biloxi,  Miss. 


GentiUy,  La. 


Add  the  Following 
Local  Rates  to 
Junction  Points 
Named,  Adopting 
Lowest  Totals  as 
Through  Rates 


Louisville,  Ky .  .  .  . 

Mobile,  Ala 

Montgomery,  Ala 
Nashville,  Tenn.  . 
Pensacola,  Fla.  .  . 


Louisville,  Ky .  .  . 

Mobile,  Ala 

Montgomery,  Ala. 
Nashville,  Tenn.  . 
Pensacola,  Fla.  .  . 


Louisville,  Ky .  .  .  . 

Mobile,  Ala 

Montgomery,  Ala. 
Nashville,  Tenn.  . 
Pensacola,  Fla .  .  . 


Lomsville,  Ky ... 

Mobile,  Ala 

Montgomery,  Ala. 
Nashville,  Tenn.  . 
Pensacola,  Fla.  .  . 


Louisville,  Ky ... 

Mobile,  Ala 

Montgomery,  Ala. 
Nashville,  Tenn.  . 
Pensacola,  Fla.  .  . 


Louisville,  Ky .  . 
Mobile,  Ala.  .  .  . 
Nashville,  Tenn. 


Louis\'ille,  Ky.  . 
Mobile,  Ala.  .  .  . 
Nashville,  Tenn. 


Louisville,  Ky.  .  . 

Mobile,  Ala 

New  Orleans,  La . 
Nashville,  Tenn.  . 


Rates  in  Cents  per  100  Pounds  Except 
AS  Noted 


2     3     4 


Classes' 
5     6    A    B 


C2    D    E    H   F' 


108  88  78  64  57  47  34  40  27 
62  50  39  32  27  26  21  26  17 
12  10  9876665 
75  72  62  49  41  34  26  32  20 
62  50  39  32  27  26  21   26   17 


25  50  45  54 
16  30  25  30 
5  6  6  10 
20  39  27  40 
15  30  25  30 


110  90  78  65  60  56  45  51   33  25  56  56  66 

64  55  49  43  38  36  32  36   18  15  36  36  28 

29  25  22   19   18   17  17   17   11  9   17  17  22 

92  81   64  59  52  45  37  43  26  23  50  38  52 

60  52  46  41  36  33  32  33   18  15  33  33  36 


110  90  78  65  60  56  52  56  34  25  56  56  68 

58  50  44  39  34  32  32  32   17  14  32  32  34 

41  35  31   20  26  24  24  24   12  10  24  24  24 

99  83  65  60  55  51  44  50  27  24  51  45  54 

56  48  43  38  33  31   31   31   17  14  31   31   34 


113  92  78  67  62  58  54  58  34  27  58  58  68 

55  47  42  37  32  30  30  30  16  13  30  30  32 

51  44  39  34  31  29  29  29   15  12  29  29  30 

102  85  66  61  56  52  49  52  28  24  52  49  60 

51  44  39  34  31  29  29   29   15  12  29  29  30 


113  92  78  67  62  56  46  58  30  26  49  58  60 

43  .37  33  30  27  25  25  25   12  10  25  25  24 

58  50  44  39  34  32  32  32   17  14  32  32  34 

102  85  66  61   56  50  42  48  28  24  44  41   56 

35  30  27  23  22  21   21   21   12  10  21   21  24 


113  92  78  67  60  54  44  57  29 

32  27  24  21  20  19  19  19  11 

102  85  66  61  53  48  40  46  27 

25  47  58  58 

9  19  19  22 

24  42  39  54 

110  92  78  63  52  46  36  49  25 
20  17  15  13  12  11  11  11  7 
95  80  66  55  45  40  32  38  23 

23  39  58  50 

7  11  11  14 

22  34  31  46 

102  85  74  58  47  41  31  42  27J 
29  25  22  19  18  17  17  17  11 
29  25  22  19  18  17  17  17  11 

104  88  70  61  51  46  38  33  23 

25  34  39  55 
9  17  17  22 
9  17  17  22 

18  40  37  41 

Louisville,  Ky.  .  . 
Nashville,  Tenn.  . 
New  Orleans,  La . 


102  85  74  58  47  41  31  42  27J  25  34  39  55 
83  73  64  50  40  35  27  33  23  18  29  26  41 
12   10     9876665       566     10 


'Governed  by  the  Southern  Classification. 
«C.  L.  only. 
'Per  barrel. 


164        FREIGHT  RATES :  SOUTHERN  TERRITORY 


/^CA/rtg  et^^ji^y,  ^//9J0  0 


//3 

/3e 

/^;3 

/^s 

^B 

/64 

k3^ 

//o 

43 

/4-3 

SOUTHEASTERN  TERRITORY  165 

It  will  be  observed  that  at  Catoma,  Ala.,  which  is  the 
first  station  outside  of  Montgomery,  Ala.,  the  rates 
would  unquestionably  make  on  the  Montgomery  combi- 
nation, whereas  at  Hurricane,  Ala.,  the  combination 
would  be  effected  on  Mobile.  It  should  be  understood, 
in  this  connection,  that  if  a  shipment  were  destined  to 
Hurricane  and  the  rate  made  on  the  Mobile  combina- 
tion, it  would  not  be  necessary  for  the  carrier  actually 
to  transport  the  goods  to  Mobile  and  back  again.  At 
intermediate  points,  such  as  Fort  Deposit,  Georgiana, 
or  Flomaton,  Ala.,  the  combination  may  be  made  on 
either  Montgomery  or  Mobile. 

Illustrative  of  the  various  combinations,  the  accom- 
panying map  shows  the  method  of  determining  the  first- 
class  rail-and-water  rates  from  New  York  to  Flomaton, 
Ala. 

On  the  other  hand,  due  to  differences  in  classification, 
it  may  be  possible  at  times  to  employ  the  Louisville, 
Nashville,  or  Mobile  combination  to  advantage  in  order 
to  defeat  any  of  the  other  combinations.  A  basis 
such  as  this  is  quite  complicated  and  necessitates  con- 
siderable figuring  to  determine  the  most  economical 
route. 

7.     Fourth  Section  Orders 

The  orders  of  the  Interstate  Commerce  Commission 
affecting  the  points  touched  upon  in  this  chapter  will 
be  found  in  Appendix  B.  .^- 


CHAPTER  XI 

SOUTHEASTERN  TERRITORY— Continned 

1.    Adjustment   from    Eastern    Points   Other    Than 

New  York 

In  contrast  with  other  North  Atlantic  Ports,  by  far 
the  greatest  volume  of  traffic  destined  to  Southeastern 
Territory  originates  in  the  vicinity  of  New  York.  Such 
being  the  case,  it  is  only  natural  that  the  rates  from 
the  other  port  cities  be  made  with  reference  to  the  estab- 
lished rates  from  New  York. 

(a)  From  Boston,  Mass.,  and  Providence,  R.  I. 

The  water-and-rail  rates  from  Boston,  Mass.,  and 
Providence,  R.  I.,  are  made  the  same  as  the  water-and- 
rail  rates  from  New  York,  N.  Y.,  to  all  destinations  ex- 
cept Gainesville,  Ga.,  to  which  point  the  rates  are  held 
arbitrarily  5  cents  higher  on  each  class  than  the  New 
York  rates. 

A  representative  line  of  class  rates  applying  via  all  rail 
from  Boston,  Mass.,  and  Providence,  R.  I.,  is  indicated 
in  Table  41.  The  route  selected  is  that  of  the  Southern 
Railway  to  Birmingham,  Ala.,  the  Alabama  Great 
Southern  Railroad  to  Meridian,  Miss.,  and  the  Alabama 
&  Vicksburg  Railway  to  Vicksburg,  Miss.,  traversing 
the  central  portion  of  this  territory  and  thus  being  re- 
moved as  far  as  possible  from  the  effect  of  water  com- 
petition.   Nevertheless,  it  will  be  observed  that  the  rates 

166 


SOUTHEASTERN  TERRITORY 


167 


at  many  points  are  depressed  to  a  lower  level  than  those 
to  intermediate  points,  which  should  clearly  indicate  the 
compelling  nature  of  this  competition. 


TABLE  41 

Class  Rates  via  All  Rail  from  Boston,  Mass.,  and 

Providence,   R.  I.,  to  Points  in 

Southeastern  Territory 


From  Boston,  Mass., 
AND  Providence,  R.  I., 

TO 


Burgesa,  Va 

Dinwiddie,  Va 

McKenney,  Va 

Alberta,  Va 

Skelton,  Va 

Bracey,  Va 

Henderson,  N.  C 

Tar  River,  N.  C 

Durham,  N.  C 

Hillsboro,  N.  C 

Greensboro,  N.  C 

High  Point,  N.  C 

Lexington,  N.  C 

Concord,  N.  C 

North  Charlotte,  N.  C.  . 
Kings  Mountain,  N.  C.  . 

Blaeksburg,  S.  C 

Cowpens,  S.  C 

Spartanburg,  S.  C 

Fair  Forest,  S.  C 

Seneca,  S.  C 

Toccoa,  Ga 

Dunwoody,  Ga 

Atlanta,  Ga 

Freeman,  Ga 

Anniston,  Ala 

Pell  City,  Ala 

Birmingham,  Ala 

Black  Creek,  Ala 

Cottondale,  Ala 

Tuscaloosa,  Ala 

Hull,  Ala 

Akron,  Ala 

McClure,  Ala 

Boligee,  Ala 

Epes,  Ala 

Livingston,  Ala 

York,  Ala 

Kewanee,  Miss 

Russell,  Miss 

Meridian,  Miss 

Hickory,  Miss 

Newton,  Miss 

Lake,  Miss 

Morton,  Miss 

Frankfort,  Miss 

Bolton,  Miss 

Beechwood,  Miss 

Vioksburg,  Miss 


Rates  in  Cents  per  100  Pounds  Except  as  Noted 


68 
72 
80 
86 
95 
101 
101 
101 
101 
101 
101 
106 
108 
108 
108 
120 
120 
129 
131 
131 
131 
131 
135 
117 
142 
126 
142 
127 
155 
161 
150 
171 
169 
167 
161 
155 
149 
143 
137 
129 
114 
169 
134 
169 
169 
124 
152 
152 
118 


Classes' 
5   6   A   B   C 


D   E  H 


59 

63 

69 

73 

83 

88 

88 

88 

88 

88 

88 

93 

95 

95 

95 

107 

107 

113 

113 

113 

113 

113 

117 

103 

126 

108 

123 

108 

133 

138 

130 

147 

155 

143 

138 

133 

128 

123 

118 

111 

98 

148 

115 

148 

148 

109 

136 

136 

98 


52  44 

55  46 

61  50 

62  47 
69  52 
75  59 
75  60 
75  60 
75  60 
75  60 
75  60 
79  64 
81  66 
81  66 
81  66 
93  78 
93  78 
99  83 

100  86 

100  86 

100  86 

100  86 
105  90 

92  76 
107  91 

95  81 

107  91 

95  81 

116  98 

120  100 

111  91 

126  104 
124J103 

123  102 

119  99 

115  96 

111  93 

107  90 

103  87 

97  82 

86  73 

122  95 

101  83 
122  98 
122  98 

93  83 


37  30 

38  31 
42  34 
40  33 
45  38 
52  40 
62  42 
52  42 
52  42 
52  42 
52  42 

56  45 

57  46 
57  46 
57  46 
65  53 
65  53 
69  59 
71  59 
71  59 


71 
71 


59 
59 


114 
114 


90 
90 


78  61 


74  62 

62  49 

74  60 

66  54 

74  60 

66  54 
81  66 

83  68§ 
76  63 
88  72 
88  71J 
87  71 

84  68  i 

81  66 
78  63J 

75  61 
72  58^ 

67  55 
60  49 

82  70 
69  55 
82  70 
82  70 
71  64 
74  65 
74  64 
50  44 


29  37 

30  38 

32  41 

33  37 

37  41 

38  43 
38  ''3 
38  4 
38  43 
38  43 

38  43 

39  45 
39  45 
39  45 
39  45 
43  49 
43  49 
46  57 
46  58 
46  58 
46  59 
46  58 
49  61 
41  53 


30  29 

31  30 
34  32 

3  33 
35 
38 


40  47 


47 
41 


59 
53 


47  59 
41  53 
53  66 

55  62 

56  61 
61i  66 

56  68 
61  69 
59  67 

57  65 
55  63 

48  61 
51  59 
47  55 
41  48 

58  68J 
46  53 
58  58J 
58  58i 
57  53  i 
55  56i 
55  56i 
44  44 


41 

42  39 

42  39 

42  39 

42  39 

42  39 

44  39 

44  41 

44  41 

44  41 
49  42 

49  46 

50  49 
50  49 
50  49 
50  49 

50  49 
52i  51 

45  44 

51  49 
45  44 

51  50 
45  44 

52  51 J 

51  49 

52  47 

52  51  i 
58  53 
55  54 

53  52J 

51  51 

49  49i 

50  48 
48  46§ 

47  44 
40  39 
58  51 

52  44 
58  51 
58  51 

48  46 

54  49 
54  49 


52  60 

52  60 

52  60 

52  60 

52  60 

56  55 

57  66 
57  66 

57  66 
65  79 
65  79 
69  81 
69  81 
69  81 
69  81 

69  81 
72  85 
64  68 
72  86 
64  76 
72  86 

64  76 
78  80 

74  75 
67  73 
78J  80 
81  83 
80  86 
77i  89 

75  90 
72J  87 

70  84 
69i  81 

65  76 

58  68 

71  95 

70  80 

71  97 
71  97 
60  85 

66  90 
66  88 

44  44  50  61 


F« 


48 
60 
56 

66 
69 
73 
82 
82 
82 
82 
82 
86 
86 
86 
86 
95 
95 
98 
98 
98 
98 
98 

103 
88 

100 
88 

100 
88 

103 
98 

ios 

106 

108 

105 

102 

99 

96 

93 

88 

78 

107 

89 

107 

107 

96 

103 

103 

88 


'Governed  by  the  Southern  Classification. 
2Per  barrel. 


168        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

It  will  be  recalled  that  at  Vicksburg  is  felt  not  only 
the  actual  competition  of  the  Mississippi  River  but 
also  that  of  the  rail-and-water  rates,  which  are  made 
in  conjunction  with  the  ocean  steamship  lines  serving 
the  ports  of  Mobile  and  New  Orleans. 

(b)  From  Interior  New  England  Points 

Although  the  greatest  part  of  New  England  Terri- 
tory is  given  the  flat  Boston  or  Providence  rates,  there 
are  still  many  points  which  are  adjusted  arbitrarily 
with  relation  to  the  rates  currently  in  effect  from  Bos- 
ton or  Providence.  In  Table  42  are  indicated  some 
of  these  points  and  the  basis  that  is  to  be  applied  in 
constructing  through  rates  therefrom. 


TABLE  42 

Bases  for  Rates  from  Interior  New  England  Points  to 
Points  in  Southeastern  Territory 


To  Points  in  South- 
eastern Territory 

FROM 

Rate  Basis  Applicable 

Addison  Jet.,  N.  Y 

Boston  rates  plus  the  following  differentials: 

Classes 1      2     34     56ABCDEH      F 

Differentials..    11     68775555577     10 

Alburgh,  Vt 

Boston  rates  plus  the  following  differentials: 

Classes 1     2     3     4     5     6ABCDEH      F 

Differentials..      654332222233       4 

Angeline,  Que 

Boston  rates  plus  the  following  differentials: 

Classes 1     2     3      4     5     6ABCDEH      F 

Differentials..    16  14   11     9     7     5     5     5     5     5     7     9     10 

Ansonia,  Conn 

Apply  Boston  class  and  commodity  rates 

Augusta,  Me 

On  paper  add  to  Boston  rates,  C.  L.,  3|;  L.  C.  L.,  5\ 

Ausable  Forks,  N.  Y. .  .  . 

On  paper  apply  Boston  rates;  on  classes  and  other  commodities 
apply  same  rates  as  from  Addison  Jet.,  N.  Y. 

Ballston,  N.  Y 

Rates  on  cotton  piece  goods  (rated  at  fourth  class  in  Southern 
Classification)  are  1  cent  per  100  pounds  higher  than  Boston 

rates;  on  classes  and  other  commodities  Boston  rates    apply 

Basin  Mills,  Me 

On  paper  add  to  Boston  rates,  C.  L.,  7i;  L.  C.  L.,  10| 

Beldens,  Vt 

On   marble   and   granite   Boston   rates   apply;   on   other   traffic 
same  rates  apply  as  from  Leicester  Jet.,  Vt. 

SOUTHEASTERN  TERRITORY 


169 


TABLE  42— Continued 

Bases  for  Rates  from  Interior  New  England  Points  to 
Points  in  Southeastern  Territory 


To  Points  in  South- 
eastern Terkitory 
from 

Rate  Basis  Applicable 

Bellows  Falls,  Vt 

Boston  rates  plus  the  following  differentials: 

Classes 1      234     56ABCDEH      F 

Differentials ...  11     961     2^   22222     2J1        4 

Center  Rutland,  Vt 

On    marble    and   granite    Boston   rates    apply;    on    classes    and 
other  commodities  same  rates  apply  as  from  Bellows  Falls, 
Vt. 

Brunswick,  Me 

Boston  rates  plus  the  following  differentials: 

Classes 12     34     5     6ABCDEH      F 

Differentials.  .654332222233       4 

Chisholms  Mills,  Me. .  .  . 

On  paper  add  to  Boston  rates,  C.  L.,  4f ;  L.  C.  L.,  65 

Fort  Ethan  Allen,  Vt.  .  . 

On    live  stock,  C.  L.,   1   cent  per    100   lbs.,    min.    S5    per    car; 
other  freight,  C.  L.,   1  cent  per  100    lbs.,   min.  $3  per  car; 
L.  C.  L.,  5  cents  per  100  lbs.  over  rates  from  Essex  Jet.,  Vt. 

Boston  rates  plus  the  following  differentials: 

Greenfield,  N.  Y Cla.sses 1      2     3     4     5     6ABCDEH      F 

Differentials.  .10     85520000025       0 

Greenwich,  N.  Y On  paper  Boston  rates  apply;   no  basis  for  rates  in  effect  on 

classes  and  other  commodities 

Lake  Placid,  N.  Y. 


Joybridge,  Me. 


Add  to  rates  shown  from  Addison  Jet.,  N.  Y.,  $10  per  car, 
min.  wt.  30,000  lbs.;  on  L.  C.  L.  traffic  add  the  following 
differentials: 

Classes 1     2     3      4     5     6ABCDEH      F 

Differentials.  12   11    10     876666678     12 


On 


paper  add  to  Boston  rates,  L.  C.  L.,  6j;  C.  L.,  4J;  no  basis 

for  other  rates 


Leicester  Jet.,  Vt. 


Boston  rates  plus  the  following  differentials: 

Classes 1     2      3     4     5     6ABCDEH      F 

Differentials.  .12   11     8775555577     10 


Madison,  Me. 


On  paper  add  to  Boston  rates,  C.  L.,  5|;  L.  C.  L.,  14^ 


Mechanic  Falls,  Me. 


On  paper  add  to  Boston  rates,  C.  L.,  5|;  L.  C.  L.,  11 J 


Pejepscot,  Me . 


On  paper  add  to  Boston  rates,  C.  L.,  3J;  L.  C.  L.,  5 J 


Ray  Brook,  N.  Y. 


Add  to  rates  shown  to  Addison  Jet.,  N.  Y.,  $5  per  car,  min. 
wt.  30,000  lbs.;  on  L.  C.  L.  traffic  add  the  following  dif- 
ferentials: 

Classes 12     3       4     5     6ABCDEH      F 

Differentials    12   11    10     8     7     6     6     6     6     6     7     8     12 


Riverside,  N.  Y 


Boston  rates  plus  the  following  differentials: 

Classes 1      23456ABCDEH      F 

Differentials  ..10     85520000025       0 


Shawmut,  Me . 


On  paper  add   to   Boston  rates,   C.   L.,   5J;   no  basis  for  rates 
in  effect  on  classes  and  other  commodities 


It  will  be  observed  from  Table  42  that  not  a  few  of 
the    points    have    a    special    adjustment    affecting   only 


170        FREIGHT  RATES :  SOUTHERN  TERRITORY 

shipments  of  paper  and  have  no  basis  for  the  construc- 
tion of  rates  on  classes  or  other  commodities.  The 
manufacture  of  paper  is  one  of  the  chief  industries 
of  the  states  of  Vermont,  New  Hampshire,  and  Maine; 
while  the  ordinary  run  of  traffic  would  feel  no  hardship 
in  the  absence  of  through  rates,  it  is  necessary  in  any 
given  competitive  line  of  trade  such  as  this  relatively 
to  adjust  the  rates  of  the  respective  mills  in  order  to 
enable  them  to  compete  with  one  another  for  trade  in 
competitive  districts. 

As  before  stated,  this  list  shows  only  a  few  points 
and  is  given  as  typical  of  the  information  contained  in 
the  tariff.  Again,  the  adjustments  indicated  in  this 
instance  are  applied  to  Southeastern  Territory  and 
when  traffic  is  destined  to  points  in  Mississippi  Valley 
Territory,  Carolina  Territor}^,  Kentucky-Tennessee  Ter- 
ritory, the  basis  given  may  vary  for  each  adjustment. 
This  information  cannot  be  stated  in  a  general  way  and 
therefore  it  is  necessary  to  refer  to  the  publications  of 
the  carriers  for  the  basis  to  apply  from  such  inland 
points. 

(c)  From  Philadelphia,  Pa. 

To  all  destinations  in  Southeastern  Territory  east 
of  Chattanooga,  Birmingham,  Selma,  and  Montgomery, 
the  rates  from  Philadelphia  are  made  the  same  as  the 
New  York  rates  to  the  same  points. 

To  Chattanooga,  Birmingham,  Montgomery,  Selma, 
and  points  west  thereof,  the  rates  are  made  the  follow- 
ing differentials  less  than  the  New  York  rates : 

Classes 123456     A      B      C     DEH      F 

Differentials....   6622222       2       2       2       2       2       4 

There  is  one  exception  to  the  rule  just  stated,  viz., 
the   class   rates   to   Anniston,   Ala.,    are   the   minimum 


SOUTHEASTERN  TERRITORY  171 

oorresponding  rates  to  the  G-adsden  group,  the  Birming- 
ham group,  Montgomery,  and  Selma.  Thus,  the  rates 
from  Philadelphia  to  Chattanooga  would  be  constructed 
by  deducting  the  differentials  indicated  from  the  New 
York  rates  which  are  shown  in  Table  36,  the  results 
being  the  current  Philadelphia-Chattanooga   rates. 

{d)  From  Baltimore,  Md. 

The  basis  applied  from  Baltimore  differs  from  that 
from  Philadelphia  inasmuch  as  Baltimore  is  conceded 
differentials  under  the  New  York  rates  to  all  territory, 
and  rightly  so,  considering  its  distance  from  the  Vir- 
ginia Ports  and  Gateways.^ 

The  current  rates  to  Chattanooga,  Birmingham,  Mont- 
gomery, Selma,  and  points  west  thereof  are  made  the 
following  differentials  less  than  the  New  York  rates: 

Classes 123466AB     CDEH     F 

Differentials 8833333      3      3      3      3      3      6 

To  other  destinations  in  Southeastern  Territory  the 
rates  are  made  the  following  differentials  less  than  the 
New  York  rates: 

Classes 123456ABCDEHF 

Differentials 6655433      2      3      3      3      3      6 

(e)  From  Suburban  Points 

Certain  receiving  stations  in  the  suburbs  or  in  the 
lighterage  limits  of  the  port  cities  are  accorded  the 
rates  assigned  to  the  port  city.  The  list  of  such  points 
varies,  however,  according  to  the  line  that  initiates 
the  trafiSo.  The  publications  of  the  interested  carriers 
should  be  consulted  for  this  information.     It  may  be 

'See  TraflSc  Glossary. 


172        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

stated,  however,  that  in  so  far  as  New  York  is  oon- 
cerned,  the  flat  New  York  rate  is  applied  from  all 
points  within  the  lighterage  limits  of  New  York  harbor. 

(/)   From  Interior  Eastern  Territory 

Interior  eastern  territory,  or  Atlantic  Seaboard  Ter- 
ritory, as  it  is  sometimes  called,  is  defined,  for  the  ad- 
justment of  rates  to  this  territory,  as  that  portion  of 
the  country  Ijdng  east  of  a  line  drawn  from  Toronto, 
Ontario,  through  Lewiston,  Niagara  Falls,  and  Buffalo, 
N.  Y.,  and  Erie,  Pa.,  to  Oil  City,  Pa. ;  thence  via  the 
Allegheny  Valley  Railway  to  Pittsburgh,  Pa. ;  and  thence 
via  the  Ohio  River  to  Ironton,  Ohio,  but  not  including 
points  in  Buffalo-Pittsburgh  Territory  or  the  Eastern 
Port  Cities  and  their  respective  suburban  receiving  sta- 
tions. 

As  a  general  rule,  the  all-rail  rates  from  points  in 
this  territory  are  made  by  appljdng  the  Boston,  New 
York,  Philadelphia,  or  Baltimore  all-rail  rates,  as  the 
case  may  be,  where  the  proportions  demanded  by  the 
eastern  lines  to  the  Potomac  and  the  Virginia  gate- 
ways ^  are  the  same,  respectively,  as  those  from  the 
port  cities  named  to  the  same  gateways.  From  points 
taking  higher  proportions  than  those  from  the  ports, 
the  through  rates  are  as  much  higher  than  those  from 
the  ports  as  is  represented  by  the  difference  in  the  pro- 
portion. To  nearly  all  Alabama  destinations,  the  combi- 
nations on  the  Ohio  River  Crossings  are  not  exceeded. 

To  illustrate  this  adjustment,  assume  the  points  of 
origin  to  be  Reading  and  Harrisburg,  Pa.,  and  the 
destination  Bennettsville,  S.  C.  The  present  through 
rates  from  Reading  and  Harrisburg  to  Bennettsville, 
via  all  rail,  are  as  follows: 

*See  Traffic  Glossary. 


SOUTHEAJiTERN  TERRITORY  173 

Classes    1      2     3     466AB      CDE     HF 

Through  rates  from 

Reading   to  Ben- 

nettsviUe  .......  110  97  83  68  56  44  36  4U  41  36  57J  68  76 

Through  rates  from 

Harrisburg  to  Ben- 

nettsville 104  91  77  64  52  40  32  37^  37  32  53J  64  68 

The  local  all-rail  rates  from  Reading  to  Norfolk  are 
as  follows: 

Classes    .1       2      3      4      5      6ABCDEHF 
Rates  ...   52    45     35^  24     20     16     16    24     16     16    20    24     32 

These  rates  plus  the  local  rates  from  Norfolk  to  Ben- 
uettsville  produce  in  no  case  a  lower,  and  generally 
a  very  much  higher,  rate  than  that  obtained  under  the 
relative  adjustment  indicated  above.  Where  all-rail 
lines  operate  special  commodity  rates  from  Reading 
to  Norfolk  lower  than  the  all-rail  class  rates  referred 
to,  such  lower  special  commodity  rates,  when  added 
to  the  local  rates  from  Norfolk  to  Bennettsville,  pro- 
duce, in  some  cases,  lower  figures  than  the  through 
rates  referred  to  above. 

The  local  all-rail  I'ates  from  Harrisburg  to  Norfolk 
are  as  follows: 

Classes 12  3  4  5  6 

Rates 52        45        35^      24        20        16 

These  rates  are  governed  by  the  Official  Classifica- 
tion, while  the  rates  from  Norfolk  to  Bennettsville  are 
governed  by  the  Southern  Classification.  It  is  there- 
fore impracticable  to  combine  the  local  rates  to  Nor- 
folk with  the  local  rates  south  on  account  of  the  dif- 
ference existing  in  the  two  classifications  in  the  ratings 
on  various  commodities.  The  rule  that  has  been 
adopted  in  Official  Classification  Territory,  however, 
for  the  assimilation  of  the  Southern  Classification  is 
as  follows: 


174        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Classes  A,  B,  C,  and  D  in  the  Southern  Classifica- 
tion are  equivalent  to  sixth  class  in  the  Official  Classi- 
fication; Class  E  is  equivalent  to  fifth  class;  Class  H  ia 
equivalent  to  fourth  class;  and  Class  F  is  equivalent  to 
twice  sixth  class  per  barrel. 

On  some  commodities  the  actual  combinations  would, 
no  doubt,  make  less  than  the  through  rates  constructed 
on  the  relative  adjustment  referred  to  above,  although 
the  general  lines  of  rates  on  actual  combinations  would 
undoubtedly  be  higher  than  the .  through  all-rail  rates 
constructed  on  the  aforesaid  relative  adjustment.  It 
will  be  observed,  in  the  case  of  Reading  and  Harrisburg, 
that  these  are  the  Philadelphia  and  Baltimore  all-rail 
rates. 

To  nearly  all  Alabama  destinations,  the  combination 
on  the  Ohio  River  Crossings  is  not  exceeded.  The 
water-and-rail  rates  to  destinations  west  of  the  Alabama 
Great  Southern  Railroad,  including  Chattanooga,  are 
made  the  same  as  the  corresponding  all-rail  rates.  To 
points  on  and  east  of  the  Alabama  Great  Southern  Rail- 
road, the  rates  are  made  the  following  differentials 
under  the  corresponding  all-rail  rates : 

Classes 123456A      B      C      DEH      F 

Differentials....  4322111       1       1       1       1       2      2 

There  are  certain  exceptions  to  the  literal  workings 
of  the  all-rail  basis  given.  Rochester,  N.  Y.,  and  points 
taking  the  same  proportions  to  the  Ohio  and  the  Vir- 
ginia gateways  are  arbitrarily  given  the  same  rates 
as  New  York  rate  points;  Palmer  and  Spencer,  Mass., 
are  given  the  same  rates  as  Boston  rate  points;  and 
certain  stations  on  the  Northern  Central  Railway  are 
given  the  same  rates  as  Baltimore  rate  points.  Other 
rates  are  made  to  be  not  less  than  those  from  Pittsburgh. 
In  point  of  number,  however,  these  excepted  points  are 


SOUTHEASTERN  TERRITORY  175 

not  many  as  compared  with  those  which  have  rates  made 
under  the  general  basis. 

{g)  From  Buffalo-Pittsburgh  Territory 

A  line  is  drawn  from  Toronto,  Ontario,  through 
Lewiston,  Niagara  Falls,  and  Buffalo,  N.  Y.,  and  Erie, 
Pa.,  to  Oil  City,  Pa.;  thence  \ia  the  line  of  the  Alle- 
gheny Valley  Railway  to  Pittsburgh;  and  thence  down 
the  Ohio  Eiver,  through  Wheeling,  Parkersburg,  and 
Huntington,  W.  Va.,  Ironton  and  Portsmouth,  Ohio. 
The  territory  includes  points  on  and  adjacent  to  this  line 
which  take  the  same  rates  to  the  Ohio  River  Crossings 
and  to  the  eastern  Virginia  and  Potomac  gateways  as 
do  the  cities  named.  To  points  in  the  states  of  Ala- 
bama, Florida,  Georgia,  Mississippi,  and  Tennessee, 
the  rates  are  adjusted  on  the  following  basis: 

Numbered  classes  make  on  the  Ohio  River  Crossings, 
the  North  Atlantic  Ports,  the  South  Atlantic  Ports,^ 
Hagerstown,  Md.,  Strasburg  Junction,  Va.,  Shenandoah 
Junction,  W.  Va.,  Potomac  Yards,  D.  C,  or  the  Virginia 
Cities,  using  the  established  rates  south  of  these  gate- 
ways. The  rates  so  made  must  not  exceed  the  all-rail 
rates  from  New  York  by  more  than  the  following  differ- 
entials : 

Classes I  2  3         4        5        6 

Differentials 15         13        11         9        7        6 

*The  South  Atlantic  Port  combination  is  applied  only  in  connection  with 
the  following  basing  rates  governed  by  the  Southern  Classification,  applicable 
from  Buffalo,  N.  Y.,  Erie  and  Pittsburgh,  Pa.,  Wheeling,  W.  Va.,  and  points 
taking  the  same  rates  to  Charleston,  S.  C.,  and  Savannah  and  Brunswick,  Ga.: 

Classes 12  3  4  5  6 

Rates 70        60         50        40        30        25 

Wharfage  and  transfer 8  8  8  5  5  5 

Through  rates 78        68        58        45        35        30 

The  all-rail  rates  to  Charleston,  Savannah,  and  Brunswick  proper  are  to 
be  observed  as  minima  to  all  points  of  destination. 


176        FREIGHT  KATES :  SOUTHERN  TERRITORY 

The  lettered  classes  are  made  in  a  like  manner  ex- 
cept that  the  differentials  over  New  York  are  disre- 
garded and  the  South  Atlantic  Port  combinations  are 
not  authorized. 

On  commodities  not  covered  by  published  tariffs, 
through  rates  are  made  not  to  exceed  the  combination 
of  established  rates  to  the  Ohio  River  Crossings  and 
Virginia  Cities  plus  the  full  rates  south  of  such  cross- 
ings and  cities.  The  rates  so  constructed  are  governed 
by  the  Southern  Classification  except  that  to  the  terri- 
tory of  the  Associated  Railways  of  Virginia  and  the 
Carolinas,  the  exceptions  of  the  Associated  Railways 
appb^"* 

On  classified  and  commodity  traffic,  from  points  in 
Buffalo-Pittsburgh  Territory  to  points  in  Florida  on 
and  south  of  the  Jacksonville-Lake  City-Live  Oak  Line, 
except  to  Jacksonville,  Fla.,  and  group,  the  rates  are 
made  on  the  Virginia  Cities,  the  Ohio  River  Crossings, 
or  the  Jacksonville  combination. 

From  Ashland,  Ky.,  and  Kenova,  W.  Va.,  the  rates 
are  made  on  the  combination  heretofore  described,  ex- 
cept that  to  points  east  of  the  Chattanooga-Athens- 
Augusta-Macon-Live  Oak  Line,  Cincinnati  rates  are  ob- 
served as  maxima. 

The  rail-and-water  rates  from  Buffalo-Pittsburgh  Ter- 
ritory are  made  the  same  as  the  all-rail  rates. 

(h)  From  Potomac  Gateways 

The  rates  from  Alexandria,  Va.,  and  Washington, 
D.  C,  are  the  same  as  the  rail-and-water  rates  from 
Baltimore,  not  exceeding  the  actual  combination  on  the 
Virginia  Cities. 

From  Hagerstown,  Md.,  Shenandoah  Junction,  W.  Va.. 
Strasburg,  Va.,  Charlestown,   W.  Va..    and    Fredericks- 

*See  Map  5,  Atlas  of  Traffic  Maps. 


SOUTHEASTERN  TEKRiTORY  177 

burg,  Va.,  the  rates  are  the  same  as  those  currently  in 
effect  from  Alexandria  and  Harrisonburg,  Va.  To 
points  between  Harrisonburg  and  Strasburg  and  points 
between  Harrisonburg  and  Elkton,  Va.,  including  Elk- 
ton,  the  rates  are  the  same  as  those  from  Strasburg. 

(i)  From  Virginia  Cities  and  Points  Related  Thereto 

From  the  Virginia  Cities  to  common  and  base  points 
other  than  the  coast  points,  the  rates  are  made  in  rela- 
tion to  those  from  Baltimore.  To  some  destinations  the 
rates  are  made  on  fixed  differentials  under  the  Balti- 
more rail-and-water  rates.  In  other  cases,  the  rates  are 
the  same  as  those  from  that  city.  The  hinging  of  one 
destination  on  another,  however,  results  in  making  a 
very  considerable  difference  between  the  Virginia  Cities 
rates  and  the  Baltimore  rail-and-water  rates. 

In  the  sense  that  some  of  the  rates  from  the  Vir- 
ginia Cities  are  measured  by  the  corresponding  rates 
from  the  South  Atlantic  Ports,  there  is  a  relationship 
between  the  two  sections,  but  it  is  not  defined,  as  in 
the  case  of  the  Virginia  Cities  v.  Baltimore,  and  has 
not  the  eifect  of  a  mechanical  change  occurring  from 
the  Virginia  Cities  when  a  rate  is  changed  from  the 
South  Atlantic  Ports. 

From  Staunton,  Waynesboro,  Basic,  Buena  Vista, 
Buchanan,  Lexington,  Glasgow,  Springwood,  and  Char- 
lottesville, W.  Va.,  the  rates  are  made  the  following  dif- 
ferentials higher  than  the  rates  from  Kichmond,  Va.: 

Classes 123456ABCDEHF 

Differentials 8    654333333446 

From  Hampton,  Newport  News,  Old  Point  Comfort, 
Phoebus,  and  Suffolk,  Va.,  to  Chattanooga,  Birmingham, 
Montgomery,    and     Selma,    the    rates     are    the     same 


178        FKEIGHT  RATES :  SOUTHERN  TERRITORY 


TABLE  43 

Class  Rates  from  Richmond,  Va.,  to  Points  in  Carolina 

Territory 


From 
Richmond,  Va., 

TO 


Henderson,  N.  C .  . . . 

Littleton,  N.  C.» 

Weldon,  N.  C 

Raleigh,  N.  C 

Gary,  N.  C 

Durham,  N.  C 

Hester,  N.  C 

Oxford,  N.  C 

Apex,  N.  C 

Carpenter,  N.  C .  .  .  , 

Varina,  N.  C 

Holly  Springs,  N.  C.^. 
Washington,  N.  C.  .  . 

Plymouth,  N.  C 

Pinetown,  N.  C 

Henrietta,  N.  C 

Wilson,  N.  C 

Simpson,  N.  C 

Greenville,  N.  C 

Farmville,  N.  C 

Arthur,  N.   C.^ 

Stantonville,  N.  C.» .  . 

New  Bern,  N.  G 

Vanceboro,  N.  C.'.  . . . 

Kinston,  N.  C 

Tuscaroro,  N.  C.'.  .  .  . 

Goldsboro,  N.  G 

LaGrange,  N.  G.' .  .  .  . 

Selma,  N.  C 

Allendale,  S.  G 

Robbins,  S.  G 

Columbia,  S.  G 

Denmark,  S.  G 

Greenwood,  S.  C 

Newberry,  S.  G 

Prosperity,  S.  C 

Hilton,  S.  G.' 

Gross  Hill,  S.  G.' 

Glinton,  S.  G 

Gary,  S.  C.^ 

Forest  Gity,  N.  G 

Chesnee,  S.  G." 

Spartanburg,  S.  C .  .  . . 

Cfhester,  S.  G 

Camden,  S.  C 

Blaney,  S.  C.» 

Charleston,  S.  C 


Rates     in    Cents     per     100    Pounds 
Except  as  Noted 


12    3    4 


61  51  42  32  28  21  17  22 
61  51  42  32  28  21  17  22 
55  46  39  29  26  19  16  20 


Classes^ 
5    6AB     GDEHF' 
21  18  28  32  42 
21  17  28  31  42 
16  14  26  25  30 


61  51  42  32  28  21   17  22     21  18  28  32  42 


68  58  48  38  33  25 

18  24 

23  20  33  38  46 

75  65  54  42  37  29  20  26 

25  22  37  41  50 

45  35  30  25  20  15 

15  15 

13  10  20  20  22 

45  35  30  25  20  15 

15  15 

12  10  20  20  22 

65  54  46  38  31  24 

24  24 

22  20  31  33  37 

84  74  64  52  43  37  24  32 

28  25  45  53  55 

61  51  42  32  28  21 

17  22 

21  18  28  32  42 

61  51  42  32  28  21 

17  22 

20  17  28  25  39 

61  51  42  32  28  21 

17  22 

21  17  28  32  42 

61  51  42  32  28  21 

17  22 

21  18  28  32  42 

46  36  30  26  21  17 

17  m 

15  11  21  22  24 

61  51  42  32  28  21 

19  22 

21  17  28  32  35 

61  51  42  32  28  21 

17  22 

21  18  28  32  42 

61  51  42  32  28  21 

17  22 

21  17  28  32  42 

61  51  42  32  28  21 

17  22 

21  18  28  32  42 

85  79  64  52  43  37 

24  33 

28  27  44  47  50 

76  64  59  50  41  34 

18  27 

24  20  36  48  44 

85  75  62  50  41  34 

24  29 

28  24  44  47  50 

84  79  64  52  43  40 

24  34 

28  27  45  55  55 

84  79  64  52  43  40 

24  34 

28  27  43  55  54 

84  79  64  52  43  40  24  34 

28  27  41  55  54 

84  79  64  52  43  40 

24  34, 

28  27  45  55  54 

84  79  64  52  43  40  24  34 

28  27  45  55  55 

84  74  64  52  43  37  24  32     28  25  45  53  55 
84  79  64  52  43  40  24  34    28  27  45  55  55 


80  70  60  50  40  32  22  28 
82  72  62  50  40  32  23  29 
85  75  62  50  41  34  24  29 
65  55  48  40  30  25  20  20 


28  25  41  47  50 
28  23  43  47  50 
28  24  44  47  50 
17  17  30  30  30 


'Governed  by  the  Southern  Classification. 
*Per  barrel. 
'Intermediate  points. 


SOUTHEASTERN  TERRITORY  179 

as  those  currently  in  effect  from  Norfolk,  Va.  From 
stations  on  the  Southern  Railway  between  Lynchburg 
and  Charlottesville  and  stations  on  the  Norfolk  and 
Western  Eailway  between  Roanoke  and  Basic,  the  rates 
are  made  the  following  differentials  over  the  Virginia 
Cities  rates: 

Classes 123456ABCDEHF 

Differentials.  .  ..  8654333      3       3      3      4      4      6 

The  rates  so  made  are  not  to  exceed  the  rates  from 
Hagerstown,  Md. 

In  Table  43  are  given  some  representative  class  rates 
from  Richmond,  Va. 

(;;')  From  Carolina  Territory 

To  common  and  basing  points,  as  well  as  to  inter- 
mediate points,  in  this  territory,  the  general  basis  is 
the  lowest  available  combination,  except  that,  where 
applicable,  mileage  scales  are  not  exceeded,  nor  are 
the  rates  greater  than  those  from  the  Virginia  Cities 
in  any  instance. 

2.    Application  of  the  Bases 

Illustrative  of  the  adjustments  set  forth,  the  follow- 
ing method  of  constructing  the  rates  from  the  Eastern 
Cities  to  Bennettsville,  S.  C,  is  typical  of  the  general 
procedure.  The  through  rates  from  New  York  City 
via  all  Avater  to  Norfolk,  Va.,  and  via  rail  from  Norfolk 
to  Bennettsville  are  constructed  by  adding  to  the  rates 
from  Norfolk  to  Bennettsville  the  following  line  of 
proportional  rates  from  New  York  to  Norfolk: 


180        FREIGHT  RATES  :  SOUTHERX  TERRITORY 

Classes 123466AB     CDE     HF 

Rates  from  Norfolk  to 

Rennet  tsville 80  70  60  50  40  32  22  28    25  22  41     47  50 

Rates  from  New  York 

to  Norfolk 18  17  14  10  10    7    9    8i  11     9  lOJ  13  16 

Through  rates  from 
New  York  to  Ben- 
nettsville 98  87  74  60  50  39  31  36 J  36  31  51  i  60  66 


Bennettsville  being  located  in  a  territory  to  which 
Philadelphia  is  not  conceded  differentials,  the  rates 
from  Philadelphia  to  Bennettsville  are  made  the  same 
as  the  New  York  rates  to  that  point. 

The  through  rates  from  Baltimore  to  Bennettsville 
are  constructed  by  deducting  the  follomng  differentials 
from  the  New  York  rates: 

Classes 123456    A    B     CDE     HF 

Rates  from  New  York 

to  Bennettsville.  .   98  87  74  60  50  39  31  36^  36  31  5U  60  66 
Differentials 66644444      444      48 

Through  rates  from 
Baltimore  to  Ben- 
nettsville     92  81  68  56  46  35  27  32|  32  27  47§  56  58 

In  Carolina  Territory,  the  rates  from  Boston  to 
Bennettsville  are  made  the  folloA\dng  differentials  over 
the  New  York  rates: 

Classes 123456    A    B      CDE     HF 

Rates  from  New  York 

toBennettsviUe.  .   98  87  74  60  50  39  31  36J  36  31  51i  60  60 
Differentials 55555555      555      57 

Through  rates  from 
Boston  to  Ben- 
nettsviUe 103  92  79  65  55  44  36  4H  41  36  56J  65  67 

These  rates,  as  will  be  observed  from  the  local  rates 
of  the  water  carriers  from  the  various  ports  to  Nor- 
folk, shown  in  Table  24,  are  less  in  all  instances  than 
the  combinations  of  local  rates  on  the  ports. 


SOUTHEAiSTERN  TERRITORY  181 

3.   All-Rail  Rates  feom  the  Eastern  Poet  Cities 

The  rates  via  the  all-rail  routes  from  the  Eastern 
Port  Cities,  viz.,  New  York,  Philadelphia,  Baltimore, 
Boston,  etc.,  are  made  on  the  following  basis: 

To  Chattanooga,  Tenn.,  and  points  west  of  the  Ala- 
bama Great  Southern  Railroad,  the  same  rates  as  those 
in  effect  via  the  water-and-rail  routes  are  applied. 

To  points  on  and  east  of  the  Alabama  Great  Southern 
Railroad,  except  Chattanooga,  Tenn.,  via  all-rail  routes, 
the  rates  are  made  the  following  differentials  higher 
than  the  corresponding  water-and-rail  rates : 

Classes 1       234o6ABCDEHr 

Differentials.  .12     10    98655      5      5      5      6      8      10 

4.    Commodity  Rates 

In  Table  44  are  given  some  commodity  rates  applying 
upon  articles  which  have  a  general  movement  from  the 
adjoining  territories  to  points  in  the  southeast. 

In  so  far  as  practicable  the  adjustments  employed 
in  establishing  class  rates  are  adhered  to  in  the  con- 
struction of  commodity  rates;  that  is,  rates  to  points 
which  are  differentially  adjusted  Avith  relation  to  base 
points,  such  as  Atlanta,  Augusta,  or  Montgomery,  are 
made  by  adding  the  corresponding  class  differential  to 
the  rates  to  the  base  point  to  obtain  the  through  rate. 
Thus,  should  the  difference,  or  differential,  between  two 
points  on  fifth  class  be  2  cents  per  100  pounds  and  a 
commodity  rate  was  established  to  the  base  point,  which 
would,  under  ordinary  circumstances,  take  fifth  class, 
the  fifth-class  differential  would  be  added  to  the  rate 
established  to  the  base  point  in  order  to  make  the 
through  rate  to  the  point  basing  thereon. 


182        FREIGHT  RATES :  SOUTHERN  TERRITORY 

TABLE  44 

All-Rail  Commodity  Rates  from  Boston,  Mass.,  to  Points 

IN  Southeastern  Territory 


Commodities 


From 
Boston,  Mass., 
To 


Albany,  Ga 

Americus,  Ga .... 

Athens,  Ga 

Atlanta,  Ga 

Augusta,  Ga 

Bainbridge,  Ga.  . 
Birmingham,  Ala. 
Cartersville,  Ga.  . 
Columbus,  Ga.  .  . 
Chattanooga,  Tenn 

Cordele,  Ga 

Cordova,  Ala.  .  . . 

Dawson,  Ga 

Demopolis,  Ala.  . 

Eufaula,  Ala 

Florala,  Ala 

Fort  Gaines,  Ga. . 
Gadsden,  Ala.  . .  . 
Gainesville,  Ga. . 
HawkinsviUe,  Ga. 
Huntsville,  Ala.  . 

Jasper,  Ala 

Macon,  Ga 

Mobile,  Ala 

Montgomery,  Ala 

Opelika,  Ala 

Pensacola,  Fla.  .  . 

Rome,  Ga 

Savannah,  Ga.  .  . 

Selma,  Ala 

Tuscaloosa,  Ala.  . 
Valdosta,  Ga.  .  .  . 
Waycross,  Ga. .  .  . 
CarroUton,  Ga . . . 


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30  37 

301  .. 

32  39 

32  39 


61  50 

61  .. 

61  50 

61  50 

56  50 
61  .. 
61  49 
61  50 
61  50 
55  50 
61  50 
..  50 
61  50 
69  50 
61  50 
84  .. 
61  .. 
61  50 
66  50 
60  .. 

57  49 


60  50 


34  41 

34  41 

35  41 
46  35  41 

33  36 

34  41 
40  41 

35  41 
35  41 
30  36 

34  41 
46  48 

35  41 
40  45 
35  41 
52  .. 
40  .. 
40  41 
40  41 

34  40 

35  .. 
46  48 
34  40 


61  50 
61  50 


43 
44 


39 
51 


39 
39 


32  38 


32  39 

31  52 

32  38 


42 


46 


61  50 

..  47 

61  50 

..  54 

61  .. 

61  .. 

..  50 


39  42  .. 

39  42  .. 

39  42  73 

38  42  73 
33  33 

39  42 
36  39 
39  42 
39  42  73 
30  33 
39  42 
44  47 

39  42 

40  43 
39  42 
..  51 
39  42 
36  39 
44  47 
39  42 
30  33 
44  47 
39  42 


36  41 
36  41 


36  39 
39  42 


502 


35  41  39  42 


36  41 

57  57 

34  41 

34  41 

43  49 


36  39 
57  60 
39  42 


49  49  84 


'Governed  by  the  Southern  Classification. 
'L.  C.  L. 


SOUTHEASTERN  TERRITORY  183 

It  ia  an  undisputed  fact  that  competition  in  articles 
that  are  given  commodity  rates  is  felt  to  a  greater 
extent  than  in  articles  given  class  rates  and  tliis  is 
practically  the  only  reason  for  the  establishment  of 
commodity  rates.  The  class  rates  under  which  the 
traffic  would  ordinarily  be  handled  are  too  high  to  stim- 
ulate its  movement  and,  as  a  result,  the  consimiers 
purchase  at  the  nearest  market,  where  the  most  advan- 
tageous price  and  transportation  costs  can  be  secured. 
Sugar,  for  example,  is  a  staple  article,  which  is  used 
in  quantities  in  every  household  throughout  the  land. 
In  addition  to  our  own  local  supply  produced  in  the 
southern  states,  cane  sugar  is  imported  in  immense 
quantities  from  the  West  Indies,  Central  America,  and 
South  America,  through  the  ports  of  New  York  and  New 
Orleans.  Immense  warehouses  are  located  at  these  ports, 
from  which  the  sugar  is  distributed  as  the  occasion 
demands.  At  Chicago,  St.  Louis,  Cincinnati,  and  other 
inland  cities  large  jobbing  houses  specialize  in  this  com- 
modity. 

While  it  is  no  more  than  just  that  producing 
centers  should  preserve  the  advantage  of  their  location 
and  reap  the  benefits  thereof,  the  fact  that  so  much-  of 
Southern  Territory  is  accessible  by  means  of  water 
routes  has  resulted  in  the  eastern  markets,  such  as 
New  York,  Philadelphia,  and  Boston,  reaching  some 
parts  of  this  territory  on  more  advantageous  terms 
than  can  New  Orleans  or  Mobile,  although  the  latter 
points  are  located  in  the  territory  and  the  haul  to  all 
points  is  considerably  less. 

Thus,  we  find  a  local  producing  center  competing  for 
the  trade  supremacy  of  this  district,  in  so  far  as  this 
commodity  is  concerned,  with  an  importer  located  at 
some  distance  from  the  territory.  To  confine  the  trade  to 
these  two  competitors  would  be  manifestly  unfair  in  so 


184         h'RElUHT  KATE«:  SOUTHERN  TEliKlTOKY 

far  as  the  jobbers  of  the  Middle  West  are  concerned  and 
accordingly  they  are  admitted  to  the  territory  on  prac- 
tically the  same  terms.  The  lines  serving  these  outside 
markets  well  realize  that  the  dealers  they  are  serving  are 
selling  in  competition  with  the  home  product  and  there- 
fore make  their  rates  as  low  as  possible  in  order  to 
enable  such  dealers  to  meet  the  price  made  on  the  local 
product.  If  the  dealers  in  the  South  could  buy  the 
product  more  advantageously  in  the  South,  it  neces- 
sarily follows  that  not  a  pound  of  sugar  would  move 
from  the  northern  markets. 

5.    Differential  Rates  via  Gulf  Routes 

To  all  destinations  on  and  east  of  a  line  drawn  from 
Chattanooga,  Tenn.,  through  Birmingham,  Calera,  Sel- 
ma,  and  Montgomery,  Ala.,  to  Pensacola,  Fla.,  the  rates 
are  made  the  following  differentials  less  than  the 
standard  water-and-rail  rates: 

Classes 12     3     456ABCDEHF 

Differentials....   .5     432222       2       2       2       2       2       4 

6.    Fourth  Section  Orders 

As  the  adjustments  from  this  territory  are  largely 
premised  upon  the  rates  established  from  New  York, 
in  such  cases  where  an  order  of  the  Interstate  Com- 
merce Commission  has  been  entered  as  to  the  rates 
from  New  York  (see  Appendix  B),  the  order  automat- 
ically affects  the  rates  from  such  points  as  base  thereon. 


CHAPTER  Xll 

SOUTHEASTERN  TERRITORY— Continued 

1.    Westeen  Rate  Adjustments 

A  comparison  of  the  adjustments  discussed  in  this 
chapter  with  those  employed  from  the  Eastern  Port 
Cities  affords  an  effective  illustration  of  the  competi- 
tion of  producing  centers.  The  manufacturers  and 
jobbers  located  in  the  Middle  West  are  in  competition 
for  the  trade  in  Southeastern  Territory  with  the  mer- 
chants of  Boston,  NeAv  York,  Philadelphia,  and  Balti- 
more. As  these  latter  cities  have  the  advantage  of 
location,  having  access  to  the  cheaper  all-water  or  rail- 
and-water  routes,  unless  the  advantage  was  minimized 
in  some  way,  western  manufacturers  and  jobbers  would 
be  handicapped  to  an  extent  that  they  could  not  over- 
come. 

(a)  Ohio  River  Adjustment 

As  Louisville,  Ky.,  is  the  initiative  point  in  fixing 
the  rates  from  the  other  Ohio  River  Crossings  and  from 
the  Mississippi  River  Crossings,  on  which  are  hinged 
the  rates  from  the  territory  lying  north,  northwest,  and 
west  thereof,  the  present  discussion  will  be  confined  to 
the  rates  from  that  point. 

Baltimore  v.  Louisville. — Under  the  system  of  con- 
structive distances,   as  before  stated,  the  haul  of  the 

185 


186        FREIGHT  RATES :  SOUTHERN  TERRITORY 

rail-and-water  routes  from  Baltimore  via  the  South 
Atlantic  Ports  to  Atlanta  is  approximately  the  same  as 
the  rail  distance  from  Louisville  to  Atlanta.  On  this 
principle,  it  inevitably  came  about  that  the  competitive 
rates  from  Baltimore  via  rail-and-water  routes  to  At- 
lanta were  made  the  same  as  the  rates  from  Louisville 
to  Atlanta,  and  vice  versa.  Atlanta's  inbound  adjust- 
ment from  the  East  and  from  the  West  is  today  fixed 
under  this  principle. 

This  adjustment  has  included  the  numbered  classes 
and  most  of  the  commodities.  Practically  all  of  the 
commodities  of  the  lower  classes  are  essentially  western 
products,  that  is,  products  which,  although  not  neces- 
sarily peculiar  to  the  central  West,  are  produced  in 
far  greater  volume  there  than  in  the  East,  and  which 
find  the  lines  of  least  resistance  in  reaching  the  south- 
east over  western  lines. 

Li  Table  45  are  given  the  class  rates  applicable  from 
Louisville  to  the  more  important  base  points  in  South- 
eastern Territory. 

In  this  adjustment,  the  possibility  of  the  middle 
western  merchant  taking  advantage  of  the  ocean  rates 
must  be  taken  into  account.  For  years,  Pittsburgh,  Chi- 
cago, and  related  points  have  shipped  via  eastern  ports 
to  southeastern  points.  An  extreme  illustration  of  this 
competition  is  found  in  the  rail  rates  from  Cincinnati 
to  Augusta,  Ga.,  which  are  influenced  to  some  extent  by 
the  ability  of  the  Cincinnati  merchants  to  ship  to  Balti- 
more by  rail,  thence  by  ocean  to  Savannah,  and  thence 
by  river  to  Augusta.  Partly  as  a  result  of  this  and 
partly  as  a  result  of  the  influence  of  the  all-water  rates 
to  Augusta  from  the  Eastern  Port  Cities,  the  rail  rates 
from  Cincinnati  and  other  western  points  to  Atlanta 
and  Augusta  are  relatively  adjusted.  The  rates  to 
Augusta  are  on  a  slightly  higher  basis  than  those  to 


SOUTHEASTERN  TERRITORY 


187 


TABLE  45 
Class  Rates  from  Louisville,  Kt.,  to  Southern   Common 

Points 


From 
Louisville,  Ky., 
To 


Albany,  Ga 

Anniston,  Ala 

Atlanta,  Ga 

Augusta,  Ga 

Bainbridge,  Ga.  .  .  . 
Birmingham,  Ala. .  . 

Bremen,  Ga 

Brunswick,  Ga 

Calera,  Ala 

Chattanooga,  Tenn. 

Columbia,  Ala 

Columbus,  Ga 

Cordova,  Ala 

Cuthbert,  Ga 

Dalton,  Ga 

Dothan,  Ala 

Eufaula,  Ala 

Fitzgerald,  Ga 

Florala,  Ala 

Florence,  Ala 

Ft.  Gaines,  Ga 

Ft.  Valley,  Ga 

Griffin,  Ga 

Hawkinsville,  Ga. .  . 

LaG  range,  Ga 

Jacksonville,  Fla.  .  . 

Macon,  Ga 

Maplesville,  Ala.  .  . 

Marietta,  Ga 

Milledgeville,  Ga. .  . 
Montgomery,  Ala.  . 

Moultrie,  Ga 

Mulga,  Ala 

Newnan,  Ga 

Port  Royal,  S.  C .  .  . 

Prattville,  Ala 

River  Jet.,  Fla 

Roanoke,  Ala 

Rome,  Ga 

Savannah,  Ga 

Tuscaloosa,  Ala .... 

Waycross,  Ga 

West  Point,  Ga 

Wetumpka,  Ala.  . . . 
Wilmington,  N.  C. . 


Rates    in    Cents    per    100    Pounds    Except 
AS  Noted 


1 


Classes' 
456ABC     D     EHF« 


123 

98 

98 
103 
132 

79 
128 

95 
100 

70 
132 
103 

79 
128 

97 
136 
103 
143 
115 

79 
115 
128 
125 
123 
134 

95 
103 
111 
106 
110 

98 
143 

97 
125 

95 
110 
120 
125 

98 

95 
108 
135 
131 
108 

82 


107  96 
87  78 
87  78 
90  81 

112  98 
69  58 

113  102 
80  75 
80  60 
60  53 

115  98 
90  81 
69  58 

112  100 
84  75 

116  102 
90  81 

124  110 

92  78 

69  68 

101  91 

112  100 

111  100 

107  96 

119  107 

80  75 

90  81 

100  86 

87  78 

96  87 
87  78 

124  110 
84  70 

111  100 
80  75 

97  86 

96  72 
111  100 

87  78 

80  75 

94  79 

116  107 

116  105 

97  88 
68  53 


78  65 
63  52 
63  52 
65  54 

82  68 
47  40 

84  70 
70  58 
57  53 
44  38 

83  70 
65  54 
47  40 

82  68 
63  52 
86  71 

65  54 
90  74 

66  62 
47  40 
75  63 

83  68 
83  68 
78  65 
88  72 
70  58 
65  54 
78  67 
63  58 
70  58 

62  50 
90  74 
57  48 
83  68 
70  58 
70  58 

69  65 
83  68 

63  52 

70  58 

64  55 
90  74 

85  67 

67  55 
41  32 


52  37 
41  28 
41  28 
43  28 
55  40 
30  28 
55  42 

46  35 

47  43 

29  20 
55  40 
43  28 

30  28 
55  40 
41  28 

58  43 
43  28 

59  44 
59  60 
30  23 

51  36 

55  40 

53  40 

52  37 

56  42 
46  35 
43  28 

49  43 

50  38 
46  30 
41  28 
59  94 
36  34 

53  40 
46  35 
49  33 
62  39 
53  39 

41  28 
46  35 

42  31 
59  44 
52  37 
46  33 


42  33 
36  28 
36  28 
38  30 
44  33 
34  26 


29 
24 
24 
26 
29 
22 
48  35§  301 


38  29 
51  36 
29  25 

44  33 
38  30 
34  26 
47  36 
36  28 
47  36 
38  30 

45  35 
64  44 
29  25 

46  34 

47  36 

48  33 
42  33 


25 
25 
21 
29 
26 
22 
31 
24 
31 
26 
31 
31 
21 
30 
31 
29 
29 


51  37i  33 


38  29 
38  30 

47  33^ 

46  35 
40  32 
34  26 
45  35 
40  32 

48  36 

38  29 

39  31 
55  37 
48  33 
36  28 

38  29 

40  31 
45  35 

47  34 

39  31 


25  23  27  23 


25 

26 

32 

27 

28 

22 

31 

27 

311 

25 

27 

31 

29 

24 

25 

25 

31 

29^ 

27 

21 


60  60  58 
48  45  48 
48  48  48 
50  50  52 

61  69  57 

39  39  44 
66  69  63 

40  40  50 
52  52  66 
34  39  42 
65  66  57 
50  50  52 

39  39  44 

63  64  64 

48  48  48 
65  73  63 

60  50  52 
70  70  62 

61  61  80 
34  33  42 
60  60  60 

64  64  64 
64  68  58 

60  60  58 
68  73  67 

40  40  50 
50  50  52 

61  56  66 
54  54  62 
54  54  56 
44  39  44 
70  70  62 

47  49  56 
64  68  64i 
40  40  50 

49  44  54 
64  64  66 
64  68  68 

48  48  48 
40  40  50 
52  39  54 
63  69  62 
68  70  m 

49  44  64 
26  35  46 


'Governed  by  the  Southern  Classification. 
'Per  barrel. 


188        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

Atlanta,  although  the  route  to  Augusta  through  Atlanta 
is  170  miles  longer  than  to  Atlanta, 

That  this  low  combination  of  rail-and-water  rates  from 
the  West  to  Augusta  is  possible  is  due  to  the  fact  that 
the  rail  lines  from  Cincinnati  and  other  western  points 
to  eastern  ports  are  able  to  make  relatively  low  rates  as 
measured  by  distance  because  of  the  denseness  of  the 
traffic  and  the  influence  of  the  lake-and-canal  rates  to  all 
Trunk  Line  ports.  Here  we  have  the  influence  of  the 
Great  Lakes  shown  as  far  south  as  Augusta. 

As  is  well  known,  the  rates  from  all  points  north  of  the 
Ohio  River  and  east  of  the  Mississippi  River  to  the  ports 
of  Boston,  New  York,  Philadelphia,  Baltimore,  Norfolk, 
and  Newport  News  are  based  on  the  rates  from  Chi- 
cago to  New  York,  which  rates  are  controlled  by  the 
Great  Lakes  and  the  Erie  Canal.  The  ports  south  of 
Norfolk,  however,  do  an  export  business.  Mobile  and 
New  Orleans  being  in  active  competition  with  the  North 
Atlantic  Ports  for  the  export  grain  business  of  the 
West.  As  they  have  a  longer  ocean  voyage  to  the 
European  ports,  it  is  necessary  for  the  roads  serving 
them  to  make  rates  even  below  the  rates  to  the  North 
Atlantic  Ports.  Favored  by  down  grade  and  no  moun- 
tain barriers,  they  have  been  able  to  do  this.  Mr. 
James  J.  Hill  expressed  this  advantage  of  the  Gulf 
ports  very  graphically  when  he  said  on  one  occasion: 
''You  can  kick  a  barrel  of  flour  at  Minneapolis  and  it 
will  roll  to  New  Orleans." 

The  basis  under  which  the  rates  in  Table  45  are  estab- 
lished in  the  first  instance  is  indicated  in  the  bases  for 
rates  given  in  Table  46.  This  basis  varies,  in  some  few 
instances,  from  the  current  rates,  which  may  be  attrib- 
uted to  the  same  causes  as  affect  the  Eastern  Cities 
adjustment. 


SOUTHEASTERN  TERRITORY 


189 


TABLE  46 

Bases  for  Class  Rates  from  Louisville,  Ky.,  to  Points  in 

Southeastern  Territory 


Differentials  in  Cents  per 

100  Pounds 

FuoM  Louisville, 

Except  as  Noted 

Ky.,  to  the  Fol- 
lowing Base 

Remarks 

Points 

Classes> 

1     2 

3 

4 

5 

6 

A 

B 

CD  E 

H 

¥* 

Adel,  Ga 

3     3 

2 

2 

2 

2 

2 

4 

2 

2     4 

4 

4 

Over  Valdo8ta,Ga.,rates 

Albany,  Ga 

20  17 

15 

13 

11 

9 

9 

4 

3 

3  10 

10 

6 

Over  Macon,  Ga.,  rates 

Andalusia,  Ala 

. 

See  Note  1 

Arlington,  Ga 

42  38 

34 

31 

25 

19 

19 

14 

8 

7  24 

28 

14 

Over   Eufaula,    Ala., 
rates  for  beyond;    see 
Note  2 

Bainbridge,  Ga 

34  25 

20 

20 

18 

14 

12 

10 

i 

7   17 

30 

13 

Over  Montgomery,  Ala., 
rates 

Birmingham,  Ala.  .  . 

See  Note  3 

Bremen,  Ga 

12 

5 

5    .. 

10 

Over  Atlanta,  Ga., rates; 

see  Note  4 

Calera,  Ala 

See  Note  1 

CarroUton,  Ga 

12  11 

10 

9 

9 

8 

8 

8 

4 

4  12 

15 

8 

Over  Atlanta,  Ga.,  rates 

Chattanooga,  Tenn. 

. 

, 

See  Note  5 

Columbia,  Ala 

29  25 

17 

18 

16 

12 

12 

fi 

3 

3  15 

1« 

5 

Over  Eufaula,  Ala., rates 

Cordova,  Ala 

. 

See  Note  6 

Cuthbert,  Ga 

25  22 

19 

17 

14 

12 

12 

9 

6 

5  13 

14 

12 

Over   Eufaula,    Ala., 
rates  for  beyond 

Dalton,  Ga 

See  Note  7 

Demopolis,  Ala 

5     4 

4 

3 

3 

2 

2 

2 

1 

1     2 

2 

2 

Over  Selma,  Ala.,  rates 

Dothan,  Ala 

4     4 

4 

4 

3 

3 

3 

3 

3 

2     4 

4 

6 

Over    Bainbridge,    Ga., 
rates 

Elberton,  Ga 

14  13 

11 

10 

8 

7 

4 

5 

4 

4     6 

6 

8 

Over   Augusta,    Ga., 
rates;  see  Note  8 

Fitzgerald,  Ga 

20  17 

14 

12 

9 

7 

7 

3 

2 

2   10 

10 

4 

Over  Albany,  Ga.,  rates 

Florence,  Ala 

See  Note  9 

Fort  Gaines,  Ga. .  .  . 

12  11 

10 

10 

9 

8 

8 

8 

4 

4   10 

10 

8 

Over  Eufaula,  Ala. .rates 

Fort  Valley,  Ga 

25  22 

19 

18 

14 

12 

12 

9 

6 

5   14 

14 

12 

Over  Macon,  Ga.,  rates; 
see  Note  2 

Georgetown,  S.  C. .  . 

15   14 

12 

10 

8 

7 

3 

6 

5 

4     6 

6 

8 

Over  Charleston,  S.  C, 
rates;  see  Note  10 

Griffin,  Ga 

22  21 

19 

18 

14 

10 

12 

10 

3 

3   14 

18 

6 

Over  Macon,  Ga.,  rates; 
see  Note  2 

Macon,  Ga 

5     3 

3 

2 

2 

2 

0 

2 

2 

2     2 

2 

4 

Over  Atlanta,  Ga.,  rates 

Maplesville,  Ala..  .  . 

. 

. 

See  Note  11 

Marietta,  Ga 

, 

, 

See  Note  12 

Milledgeville,  Ga.  .  . 

2 

2 

2 

2   .. 

4 

See  Note  13 

Montgomery,  Ala  .  . 

, 

t    •  . 

See  Note  14 

Moultrie,  Ga 

. 

. 

See  Note  15 

Mulga,  Ala 

18  15 

12 

10 

8 

6 

6 

6 

6 

5     8 

10 

12 

Over     Bessemer,     Ala., 
rates;  see  Note  2 

Newnan,  Ga 

See  Note  16 

Piedmont,  Ala 

5 

5 

5   .. 

5 

Over     Anniston,Ala., 

rates 

Prattville,  Ala 

12  10 

8 

8 

8 

8 

o 

5 

o 

5     5 

5 

10 

Over  Montgomery,  Ala., 

rates 

River  Jet.,  Fla 

See  Note  17 

Roanoke,  Ala 

22  21 

19 

18 

14 

10 

11 

10 

3 

3  14 

18 

6 

Over   Opelika,    Ala., 
rates;  see  Note  2 

Silver  Creek,  Ga 

See  Note  18 

South  Atlantic  Ports 

See  Note  19 

Tuscaloosa,  Ala.  .  . . 

, 

See  Note  20 

Union  Springs,  Ala.. 

33  20 

21 

20 

18 

14 

13 

9 

6 

5  18 

13 

11 

Over    Eufaula,    Ala., 
rates,  see  Note  21 

Waycross,  Ga 

See  Note  22 

West  Point,  Ga 

See  Note  23 

Wetumpka,  Ala.  . .  . 

10  10 

10 

5 

5 

5 

5 

5 

5 

5     5 

5 

10 

Over  Montgomery,  Ala., 
rates 

•Governed  by  the  Southern  Classification. 
*Per  barrel. 


190        FREIGHT  RATES :  SOUTHERN  TERRITORY 

?^NoTB  1. — From  Louisville  and  Cincinnati  the  rates  are  not  made  higher 
than  the  lowest  combination  and  not  higher  than  the  local  rates  of  the  Louis- 
ville &  Nashville  Railroad,  observing  the  Montgomery  differentials  as  between 
Louisville  and  Cincinnati  interchangeably,  the  totals  thus  made  being  not 
less  than  the  rates  to  Montgomery.  The  rates  on  Classes  A  and  B  to  Anda- 
lusia and  on  B  and  D  to  Florala  are  now  at  a  variance  with  this  basis  and  are 
subject  to  revision. 

Note  2. — The  lowest  combination  is  observed  as  maximum. 

Note  3. — The  rates  to  Birmingham  are  made  the  same  as  those  from 
Memphis  in  line  with  the  Chattanooga  rates  as  the  latter  existed  prior  to 
September  1,  1888,  but  not  higher  than  the  Montgomery  rates.  The  rates 
from  Louisville  are  made  4  cents  per  100  pounds  higher  than  the  rates  from 
Memphis. 

Note  4. — On  Classes  B,  C,  D,  and  F  the  rates  are  12  cents,  5  cents, 
5  cents,  and  10  cents,  respectively,  higher  than  the  Atlanta  rates.  The 
rates  on  other  classes  are  made  on  the  lowest  combination. 

Note  5. — The  rates  originally  were  made  the  same  per  mile  as  those  to 
Atlanta,  except  that  on  Classes  4,  5,  6,  and  H  the  rates  were  not  higher  than 
those  to  Birmingham.  An  order  by  the  Interstate  Commerce  Commission 
to  reduce  the  numbered  class  rates  to  the  extent  of  6  cents,  5  cents,  4  cents, 
3  cents,  2  cents,  and  1  cent  on  the  respective  classes  became  effective  July  15, 
1910. 

Note  6.— The  rates  are  made  the  Birmingham  differentials  higher  than 
the  Memphis  rates,  but  are  not  in  excess  of  the  lowest  combination.  The 
Birmingham  rates  are  observed  as  maximum. 

Note  7. — The  rates  are  made  the  same  as  those  to  Atlanta,  but  do  not 
exceed  the  Chattanooga  combination. 

Note  8. — The  rates  so  arrived  at  are  not  higher  than  the  Virginia  Cities 
combination,  applying  the  CaroUna  base  rates  to  the  Virginia  Cities. 

Note  9. — The  initiative  point  here  is  Memphis,  the  rates  from  which, 
while  primarily  the  local  rates  of  the  Southern  Railway,  cover  also  the 
competitive  conditions  found  at  destination.  The  rates  from  Nashville  are 
made  the  same  as  those  from  Memphis,  except  that  on  Classes  B,  C,  D,  and 
F  the  rates  are  2  cents  per  100  pounds,  or  4  cents  per  barrel,  less  than  the 
Memphis  rates.  The  rates  from  Louisville  are  made  the  following  differentials 
higher  than  the  rates  from  Nashville: 

Classes 1      2      3      4      5      6ABCDEHF 

Differentials....   35     27     25     21     18     13     8    0    0    0     12     5    0 

On  Classes  B,  C,  D,  and  F  the  rates  are  made  4  cents  per  100  pounds, 
or  8  cents  per  barrel,  higher  than  the  Memphis  rates.  The  rates  from  St. 
Louis  are  made  the  following  differentials  higher  than  the  rates  from  Louis- 
ville: 

Classes 1       2      3      4      56ABCDEHF 

Differentials....  23     19     17     12     10    8     7     8    7     5    8     10     14 

Note  10. — The  rates  so  made  do  not  exceed  the  lowest  combination, 
including  combinations  on  Richmond,  Va.,  using  the  Carolina  base  rates 
thereto. 


SOUTHEASTERN  TERRITORY  191 

Note  11. — From  St.  Louis  and  Cairo  the  rates  are  not  higher  than  the 
lowest  combination  or  higher  than  the  rates  of  the  Mobile  &  Ohio  Railroad 
to  Adams,  Ala.,  or  higher  than  the  Montgomery  differentials  as  between 
St.  Louis  and  Cairo  interchangeably.  The  rates  from  Louisville  are  made 
the  same  as  the  rates  from  Cairo. 

Note  12. — The  rates  are  made  the  same  as  the  local  rates  of  the  Louis- 
ville &  Nashville  Railroad,  but  not  in  excess  of  combinations,  or  lower  than 
the  rates  to  Atlanta. 

Note  13. — The  rates  are  made  107  per  cent  of  the  rates  to  Macon,  Ga., 
with  maximum  differentials  above  Macon  of  the  following  amounts  on  the 
classes  indicated: 

Classes A  B  C  D  F 

Differentials..  2  2  2  2  4 

Note  14. — Generally  speaking,  the  rates  are  made  with  respect  to  the 
competition  via  Mobile  and  the  Alabama  River,  but  also  in  fair  relation 
with  the  rates  from  the  East  to  Montgomery  and  again  measured  by  a  com- 
parison of  Montgomery  with  other  southeastern  common  points. 

Note  15. — The  rates  are  made  the  same  as  those  to  Tifton,  Ga.,  but  are 
not  to  exceed  the  lowest  combination. 

Note  16. — On  Classes  C,  D,  and  F  and  on  specific  commodities  the  rates 
are  made  by  adding  arbitrary  figures  (less  than  the  locals)  to  the  rates  to 
Macon,  Columbus,  or  Atlanta,  as  the  case  may  be.  All  other  rates  are  made 
on  the  basis  of  the  lowest  combination. 

Note  17. — The  rates  are  made  the  same  as  those  to  the  other  landings 
on  the  Apalachicola  and  Chattahoochie  rivers,  but  not  exceeding  the  local 
rates  of  the  Louisville  &  Nashville  Railroad  or  the  lowest  combinations  and 
observing  the  Montgomery  differentials  as  between  Louisville  and  Cincinnati 
interchangeably. 

Note  18. — On  Classes  C,  D,  and  F  the  rates  are  the  same  as  those  to 
Rome,  Ga.  Other  class  and  commodity  rates  are  made  on  the  basis  of  the 
lowest  combination. 

Note  19. — The  rates  on  the  numbered  classes  and  on  Classes  B,  E,  and 
H  are  calculated  by  adding  the  rates  from  Chicago  to  New  York  to  the 
steamer  rates  from  that  port  to  Charleston  and  from  such  aggregates  are 
deducted  the  rates  from  Chicago  to  Louisville,  the  balance  being  the  rates 
from  Louisville.  The  rates  on  Classes  C,  D,  and  F  are  to  figured  permit 
the  movement  from  the  Ohio  River  as  against  the  movement  from  com- 
peting markets  in  the  north  by  rail  to  the  North  Atlantic  Ports  and  thence 
by  steamer.  The  rates  on  Class  A  are  arbitrarily  fixed.  Most  of  the  com- 
modity rates  are  established  under  similar  conditions. 

Note  20. — From  Cincinnati  the  rates  on  the  numbered  classes  are  fixed 
under  the  local  bases  of  the  Cincinnati,  New  Orleans  &  Texas  Pacific  Railway 
and  the  Alabama  Great  Southern  Railroad.  The  rates  on  the  lettered 
classes  are  made  the  same  as  the  rates  from  St.  Louis.  From  St.  Louis  the 
rates  on  the  numbered  classes  are  the  same  as  the  rates  from  Cincinnati. 
The  rates  on  the  lettered  classes  are  the  same  as  the  rates  from  St.  Louis 
to  Montgomery.  From  Louisville,  the  rates  are  made  the  Montgomery 
differentials  less  than  the  Cincinnati  rates;  from  Cairo  and  group  the  rates 
are  made  the  following  differentials  less  than  the  rates  from  St.  Louis: 

Classes 1       2      3     456ABCDEHr 

Differentials 15     12     10     8     7^.6,4     5     5     5     5     10     10 


192        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Note  21. — The  rates  so  made  do  not  exceed  the  lowest  combination  on 
Columbus,  Eufaula,  or  Montgomery. 

Note  22. — The  rates  are  made  on  the  Brunswick  combination,  but  are 
not  to  exceed  the  rates  to  Valdosta,  Ga. 

Note  23. — On  specific  articles  the  rates  are  made  fixed  arbitraries  higher 
than  the  Opelika,  Ala.,  rates.     Other  rates  are  made  on  the  lowest  combination . 

As  a  great  number  of  points  take  the  same  basis  for 
rate  construction  as  do  those  indicated  in  Table  46, 
it  has  seemed  desirable  to  arrange  these  points  alpha- 
betically in  a  separate  table  rather  than  to  include  them 
in  Table  46.  A  list  of  these  points  and  the  base  rates 
to  apply  in  each  case  are  indicated  in  Table  47. 

TABLE  47 

Other  Common  Points  Taking  the  Same  Bases  of  Rates  as 
Those  to  Points  Shown  in  Table  46 


From  Louisville,  Ky., 
to 

Alabama  City Ala. 

Americus ■.  .  Ga. 

Anniston Ala. 

Asylum Ga. 

Athens " 

Attalla Ala. 

Augusta Ga. 

Avondale Ala. 

Barclays " 

Bessemer " 

Boyles " 

Cartersville Ga. 

Cedartown " 

Chattahoochee " 

Columbiana Ala. 

Columbus Ga. 

Cordele « 

Dawson " 

Decatur Ala. 

Dublin Ga. 

East  Birmingham Ala. 

East  Point Ga. 

Eufaula Ala. 

Ft.  McPherson  Ga. 

Gadsden Ala. 

Gate  City " 


Apply  Same  Rates  as 
Shown  in  Table  46  to 

Anniston Ala. 

Albany Ga. 

(See  Note  1) 

Milledgeville Ga. 

Augusta " 

Anniston Ala. 

Macon Ga. 

Birmingham Ala. 

Anniston " 

Birmingham " 

u  u 

Rome Ga. 

Atlanta " 

(See  Note  2) 

Macon Ga. 

Americus " 

Albany " 

Florence Ala. 

Hawkinsville Ga. 

Birmingham Ala. 

Atlanta Ga. 

Macon " 

Atlanta " 

Anniston Ala. 

Birmingham * 


SOUTHEASTERN  TERRITORY 


198 


TABLE  47— Continued 

Other  Common  Points  Taking  the  Same  Bases  of  Rates  as 
Those  to  Points  Shown  in  Table  46 


From  Louisville,  Ky.. 

TO 

Girard Ala. 

Grasselli . " 

Hawkinsville Ga. 

Helena " 

Hapeville " 

Huntsville Ala. 

Irondale " 

Ironaton " 

Jasper " 

Jenifer '" 

LaGrange Ga. 

Lanette Ala. 

Lockhart " 

McRae Ga. 

Montezuma " 

North  Birmingham Ala. 

New  Decatur " 

Opelika " 

Oxford " 

Oxmoor .\Ia. 

Ozark " 

Paxton Fla. 

Phoenix  City Ala. 

Pratt  City " 

Quitman Ga. 

Rome " 

RufEner Ala. 

Samson " 

Selma " 

Sheffield " 

South  Athens Ga. 

Spocari Ala. 

Talladega " 

Thomas " 

Thomasville Ga. 

Troy Ala. 

Tuscumbia " 

Valdosta Ga. 

Washington " 

Wheeling Ala. 

Woodlawn " 

Woodward " 


Apply  Same  Rates  as 
Shown  in  Table  46  to 

Columbus Ga . 

Birmingham Ala. 

(See  Note  3) 

(See  Note  4) 

Atlanta Ga. 

Florence Ala. 

Birmingham " 

Anniston " 

(See  Note  6) 
Anniston Ala. 

(See  Note  6) 

AVest  Point Ga. 

Florala Ala. 

(See  Note  7) 

(See  Note  8) 

Birmingham Ala. 

Florence " 

Columbus Ga. 

Anniston Ala. 

Birmingham " 

(See  Note  9) 

Florala Ala. 

Columbus Ga. 

Birmingham Ala. 

(See  Note  10) 

Atlanta Ga. 

Birmingham Ala. 

Florala " 

Montgomery " 

Florence " 

Augusta Ga. 

(See  Note  11) 

Anniston Ala. 

Birmingham ; . . .   " 

(See  Note  12) 

(See  Note  9) 
Florence Ala . 

(See  Note  12) 

Elberton Ga. 

Birmingham Ala. 

u  « 


Note  1.     The  rates  are  made  the  same  as  those  to  Atlanta,  Ga.,  except 
that  on  Class  H  the  rates  are  arbitrarily  made. 

Note  2.     From  Louisville  and  Cincinnati  the  rates  are  made  on  the 
lowest  c-ombination,  but  not  higlier  than  the  local  rates  of  the  Louisville  & 


194        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Nashville   Railroad,   observing   the   Moutgomery   differentials   as   between 
Louisville  and  Cincinnati  interchangeably. 

Note  3.     Generally,  the  rates  are  made  the  same  as  those  to  Americus,  Ga. 

Note  4.  The  rates  are  made  the  same  as  those  to  Fitzgerald,  Ga.,  but 
not  higher  than  the  lowest  combination. 

Note  5.  The  rates  are  made  the  Birmingham  differentials  higher  than 
the  Memphis  rates  but  not  in  excess  of  the  lowest  combination,  Birmingham 
rates  being  observed  as  maxima. 

Note  6.  The  rates  are  made  on  the  lowest  combination.  (The  Inter- 
state Commerce  Commission  has  recently  ordered  rates  to  be  made  the  same 
as  those  to  Atlanta,  but  the  order  is  not  effective  at  the  time  of  this  publica- 
tion.) 

Note  7.  The  rates  are  made  the  same  as  those  to  Fitzgerald,  Ga.,  but  not 
higher  than  the  lowest  combination. 

Note  8.  The  rates  are  made  the  following  differentials  higher  than  the 
rates  to  Macon,  Ga.,  with  the  lowest  combination  as  maximum. 

Classes 1     2     3    4     5     6ABCDEHF 

Differentials 25  22  19  18  14  12  12    9     6     5    14  14  12 

Note  9.  The  rates  are  made  the  following  differentials  over  the  rates  to 
Bainbridge,  Ga.,  but  not  to  exceed  the  lowest  combination. 

Classes 1     2     3    4     5    6ABCDEHF 

Differentials 44443     3     3332446 

Note  10.  The  rates  are  made  the  following  differentials  over  the  rates  to 
Albany,  Ga.: 

Classes 123450ABCDEHF 

Differentials 20  17  14  12    9    7     7     3    2    2    10  10    4 

Note  11.  The  rates  are  made  the  following  differentials  over  the  rates  to 
Sekna,  Ala.: 

Classes • 12     34     5     6ABCDEHF 

Differentials 5443322211222 

Note  12.  The  rates  are  made  the  following  differentials  over  the  rates  to 
Albany,  Ga.: 

Classes 123456ABCDEHF 

Differentials 20  17^14  12    977322    10  10    4 


Taking  the  route  formed  by  the  Louisville  &  Nashville 
Railroad  from  Louisville,  Ky.,  to  Montgomery,  Ala.,  and 
the  Seaboard  Air  Line  Railway  from  Montgomery  to 
Savannah,  Ga.,  representative  rates  to  the  more  impor- 
tant points  as  well  as  to  some  of  the  local  points  are  in- 
dicated in  their  geographical  order  in  Table  48. 


SOUTHEASTERN  TERRITORY 


195 


TABLE  48 

Rates  from  Louisville,  Ky.   to  Savannah,  Ga.,  and  Inter- 
mediate Points  via  the  Louisville  &  Nashville 
Railroad  to  Montgomery,  Ala.,  and  via    the 
Seaboard    Air    Line    Railway    from 
Montgomery  to  Savannah,  Ga. 


From 
Louisville,  Ky., 

TO 


Rates    in    Cents    per    100    Pounds    Except 
AS  Noted 


Decatur,  Ala.'.  .  .  . 
Birmingham,  Ala.^. 
Oxmoor,  Ala.'.  .  .  . 

Calera,  Ala.' 

Montgomery,  Ala.' 

Roba,  Ala.* 

Hurtsboro,  Ala.*.  . 

Plains,  Ga.* 

Americus,  Ga.*.  .  .  . 

DeSoto,  Ga.* 

Cordelp,   Ga.* 

Pitts,  Ga.* 

Helena,  Ga.* 

Vidalia,  Ga.* 

Collins,  Ga.* 

Daisy,  Ga.* 

Cuyler,  Ga.* 

Meldrim,  Ga.*.  .  .  . 
Savannah,  Ga.*.  .  . 


1 


3 


Classes' 
5     6    A    B     C 


D    E   H  F' 


79 

79 

79 

100 

98 

150 

141 

143 

123 

146 

123 

146 

143 

144 

136 

131 

120 

118 

95 


69 
69 
69 

80 
87 


58 
58 
58 
60 

78 


133  122 
121  109 
125  112 
107  96 
127  115 
107  96 
127  115 

124  110 

125  114 
118  109 
113  105 
103  95 


100 
80 


94 
75 


47  40  30 
47  40  30 
47  40  30 
57  53  47 
62  50  41 
101  85  65 
88  73  59 
91  76  61 
78  65  52 
94  79  63 
78  65  52 
93  79  63 
90  74  59 
104  84  66 
100  82  64 
96  79 
88  73  59 
85  72  57 
70  58  46 


26 
36 


62  51 


23  29  25 
28  34  26 
28  34 

43  51 
28  34  26 

50  55  41 
41  54  41 
46  51  38| 
37  42  33 
48  52  39 
37  42  33 
48  52  39 

44  45  35 

51  56  39 
53  53  38 

52  37| 
48  49  36 
46  48  35 
35  38  29 


21  34 

22  39 
22  39 
25  52 
22  44 
36  76 
36  69 
34  71 
29  60 
^^  74 
29  60 
34§  74 
31  70 
34i  66 
331  64 
33  61 
31  55 
30f  54 
25  40 


33  42 
39  44 
39  44 
52  66 

39  44 

74  74 
73  74 
73  69^ 
60  58 

75  70^ 
60  58 
75  70J 
70  62 
75  70 
70  68 
66  67i 
58  64 
55  62i 

40  50 


'Governed  by  the  Southern  Classification. 
'Per  barrel. 

'On  the  Louisville  &  Nashville  Railroad. 
*0n  the  Seaboard  Air  Line  Railwav. 


(b)  Rates  from  Louisville,  Ky.,  and  Other  Base  Points 


To  Anniston,  Ala. — The  class  rates  to  Anniston,  Ala., 
are  as  follows: 

Classes..  1   2   3   4^f5;S61A  B   C   D  E  H   F 
Rates...  98  87  78  63  52  41"  28  36  28  24  48  45  48 

The  foregoiiig  rates  are  the  same  as  the  rates  to  At- 
lanta, Ga.,  except  that  on  Class  H  the  rates  are  made 
3  cents  less  than  the  rates  to  Atlanta. 


196        FREIGHT  RATES:  SOUTHERN  TERRITOliV 

The  same  rates  as  to  Anniston  also  apply  to  the  fol- 
lowing points  in  Alabama: 

Alabama  City  Gadsden  Oxford 

Attalla  Ironaton  Silver  Run 

Barclays  Jenifer  Talladega 

Curry  Munford  TrussviUe 

To  Albany,  Ga. — The  through  class  rates  to  Albanj 
Ga.,  are  made  the  follomng  differentials  over  the  Ma 
con,  Ga.,  rates: 

Classes 1       2     3456ABCDEHF 

Macron  rates 103    90  81  65  54  43  28  38  30  26  50  50  52 

Differentials 20     17  15  13  11     9    9    4    3     3  10  10     6 

Through  rates 123  107  96  78  65  52  37  42  33  29  60  60  58 

The  same  rates  as  to  Albany,  Ga.,  also  apply  to 
Americus,  Cordele,  and  Dawson,  Ga. 

To  Atlanta,  Ga. — The  class  rates  to  Atlanta,  Ga.,  art^ 
made  the  same  as  the  rail-and-water  rates  from  Balti- 
more, Md.,  and  are  on  the  following  basis: 

Classes  ..1234      5      6ABCDEHF 
Rates  ...   98'    87'   78'    63'   52'    41'    28'    36'   28=   24'   48'    48'   48» 

The  same  rates  as  to  Atlanta  also  apply  to  the  follow- 
ing points  in  Georgia: 

Armour  East  Point  Howell 

Cartersville  Federal  Prison  Lindale 

Cedartown  Fort  McPherson  Rome 

Chattahoochee  Hapeville  Roseland  (p'ulton  Co.) 
Dalton' 

To  Charleston,  S.  C. — The  class  rates  to  Charleston, 
S.  C,  are  as  follows: 

Classes  .1       2      3      4       5      6ABCDEHF 
Rates  .  .     95     80    75     70    58    46    35    38    29     25    40    40    50 

The  class  rates  to  Charleston  were  originally  made  bv 
fixing  the  rates  from  Chicago  based    on    the   rail-and- 

'Louisville  to  Montgomery. 

'Fixed  arbitrarily. 

'Not  to  exceed  the  Chattanooga  Combination 


SOUTHEASTERN  TERRITOKY  197 

water  rates  via  Baltimore.  The  rates  from  the  Ohio 
River  Crossings  were  then  made  less  than  the  rates  from 
Chicago  to  the  extent  of  the  full  tariff  from  Chicago  to 
the  Ohio  Eiver  Crossings. 

However,  some  changes  have  been  made  since  the 
original  basis  was  established,  as,  for  example,  in  com- 
pliance with  an  order  of  the  Interstate  Commerce  Com- 
mission, effective  August  1,  1908,  the  rates  on  Class  B 
were  arbitrarily  advanced  3  cents  per  100  pounds;  on 
Classes  C  and  D,  2  cents  per  100  pounds;  and  on  Class 
F,  4  cents  per  barrel. 

The  class  rates  to  Charleston  from  Memphis,  Tenn., 
and  Vicksburg,  Miss.,  are  the  following  differentials  un- 
der the  rates  to  Louisville : 

Classes 123456ABCDEHF 

Rates 444444      4       4       4       4       4       4       8 

The  same  rates  as  to  Charleston  also  apply  to  the  fol- 
lowing points: 

Beaufort,  S.  C.  Goodrich,  S.  C.  Port  Royal,  S.  C. 

Brunswick.  Ga.  Jacksonville,  Fla.  Read  Phosphate  Works, 

Burtons  Mill,  S.  C,  Mayport,  Fla.  S.  C. 

Fernandina,  Fla.  Milldale,  Fla.  Savannah,  Ga. 

Florida  Transfer,  Fla.  (C.  L.  only)  Ten  Mile,  S.  C. 
(When  for  beyond) 

To  Birmingham,  Ala. — Memphis,  Tenn.,  is  the  base 
point  for  rates  to  Birmingham,  Ala.,  the  class  rates 
being  as  follows : 


Classes  . 

.    1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F 

Rates  .  . 

.   79 

69 

58 

47 

40 

30 

28 

34 

26 

22 

39 

39 

44 

The  rates  from  Memphis  ha\ing  been  established,  the 
rates  from  Louis\dlle,  Ky.,  and  the  Ohio  River  Cross- 
ings taking  the  same  rates  are  made  uniformly  4  cents 
per  100  pounds  higher  than  the  rates  to  Memphis. 

The  same  rates  as  to  Birmingham  also  apply  to  tho 
following  points  in  Alabama: 


198        FREIGHT  RATES :  SOUTHERN  TERRITORY 


Avondale 

Gate  City 

Pratt  City 

Bessemer 

Grasselli 

Ruffner 

Boyles 

Helena 

Thomas 

Dolcito  Junction 

Hillman 

Wheeh'ng 

East  Birmingham 

Irondale 

Winetka 

Ensley 

North  Birmingham 

Woodlawu 

Ensley  Junction 

Oxmoor 

■  '1  Woodward 

To  Chattanooga,  Tenn. — Louisville,  Ky.,  is  the  base 
point,  the  class  rates  being  as  follows: 

Classes  ..1       2      3      4      5      6ABCDEHF 
Rates  ...   70    60    53     44     38    29    20    29    25    21     34    39    42 

The  class  rates  from  Memphis,  Tenn.,  to  Chattanooga, 
Tenn.,  are  made  the  following  differentials  under  the 
rates  from  Cairo,  111.: 

Classes 12     3456     A      B      C     D     E     H      F 

Differentials 12     3      4       4       4       4       4       4       8 

The  above  basis  applies  from  the  Ohio  River  Cross- 
ings to  Chattanooga  only. 

The  rates  from  points  taking  Ohio  River  Crossings 
rates  to  points  in  what  is  known  as  the  Chattanooga 
Group  are  the  following  differentials  higher  than  the 
rates  from  the  Ohio  River  Crossings  to  Chattanooga, 
proper: 

Classes 123456ABCDEHF 

Differentials 654321     

To  Macon,  Ga. — The  through  class  rates  to  Macon, 
Ga.,  are  made  the  following  differentials  over  the  At- 
lanta, Ga.,  rates: 

Classes 12    3    4    5    6ABCDEHF 

Atlanta  rates 98  87  78  63  52  41  28  36  28  24  48  4S  48 

Differentials 533222..     222224 

Through  rates 103  90  81  65  64  43  28  38  30  26  50  60  62 

The  same  rates  as  to  Macon  also  apply  to  the  follow 
ing  points: 


SOUTHEASTERN  TERRITORY  199 

Athens,  Ga.  Eufaula,  Ala.  (proper)     Opelika,  Ala. 

Augusta,  Ga.  Girard,  Ala  Pho<^nk  City.  Ala. 

Columbus,  Ga.  (proper)'' 

To  Decotur,  Florence,  Huntsville,  New  Decatur,  Shef- 
field, and  Tuscumhia,  Ala. — The  class  rates  from  Mem- 
phis, Term.,  to  Florence,  Sheffield,  and  Tuscumbia,  Ala., 
are  as  follows: 

Classes  ..1       2      3      4      5      6ABCDEHF 
Rates  ...  44    42     33    26    22     17     1.5    25     21     17    22    28    34 

The  class  rates  from  Nashville  are  made  the  same 
as  those  from  Memphis,  except  that  on  Classes  B,  C, 
D,  and  F  the  rates  are  2  cents  per  100  pounds,  or  4  cents 
per  barrel,  less  than  the  rates  from  Memphis.  The 
rates  from  Nashville  are  as  follows : 

Classes  ..1       2      3      4      5      6ABCDEHF 
Rates  ...  44     42     33     26     22     17     15     23     19     15     22     28     30 

The  through  class  rates  from  Memphis  to  Decatur, 
New  Decatur,  and  Huntsville  are  the  following  differ- 
entials higher  than  the  rates  from  Memphis  to  Florence: 

Classes 1234     5  6ABCDEHF 

Rates  from  Memphia  to  ^  <  ■  ' 

FloreiK;e 44  42  33  26  22  17  15  25  21  17  22  28  34 

Differentials 10    8    6    5    3     3    2 3    3.. 

Through  rates 54  50  39  31  25  20  17  25  21  17  25  31  34 

The  class  rates  from  Nashville  to  Decatur,  New  De- 
catur, and  Huntsville  are  the  same  as  the  rates  from 
Memphis  to  Florence. 

The  class  rates  from  Louisville  and  the  Ohio  River 
Crossings  west  thereof  are  the  following  differentials 
higher  than  the  rates  from  Nashville,  except  as  noted: 


*The  above  basis  does  not  apply  from  Cincinnati,  from  which  point  rates 
are  made  the  Montgomery  differentials  higher  than  the  rates  to  Louisville. 
The  Montgomery  differentials  are  as  follows: 

Classes I        2        3        4        5        «.\BCDEHF 

Differentials     .  .     10       10       10       S         7         «       4       2        2        2        4        4        4 


200        FREIGHT  RATES  :  SOUTHERN  TERRITORY 

Classes  ....123466ABCDEHF 
Differentials  35    27     25    21     18     13      8      4«      4»      4«    12      5      8» 

The  class  rates  from  Cincinnati  to  Florence,  Sheffield, 
Tuscumbia,  Decatur,  and  New  Decatur  are  made  the 
Montgomery  differentials  higher  than  the  rates  to 
Louis\alle.  The  Montgomery  differentials  are  as  fol- 
lows : 

Classes 1       2       3     4     5     6     A      B      C     D     E     H      F 

Differentials.    10     10     10     8764       2       2       2       4       4       4 

The  class  rates  from  Cincinnati  to  Huntsville  are 
the  same  as  the  rates  from  Louisville. 

The  sam.e  rates  as  to  Decatur  also  apply  to  Gunters- 
ville,  Hobbs  Island,  Gunters  Landing,  and  Wyeth  City, 
Ala. 

The  same  rates  as  to  Huntsville  also  apply  to  Chase, 
Ala. 

To  Demopolis,  Ala. — The  through  class  rates  from 
Louisville,  Ky.,  to  Demopolis,  Ala.,  are  made  the  follow- 
ing differentials  higher  than  the  rates  to  Selma,  Ala.: 

Classes 1      23456ABCDEHF 

Selma  rates 98  87  78  62  50  41  28  34  26  22  44  39  44 

Differentials 5443322211222 

Through  rates 103  91  82  65  53  43  30  36  27  23  46  41  46 

To  Milledgeville,  Ga. — The  class  rates  from  Louisville, 
Ky.,  to  Milledgeville  are: 

Classes  ..1       2      345      6ABCDEHF 
Rates  ...  110     96     87     70     58     46     30     40     32     28     54     54     56 

The  above  rates  are  made  107  per  cent  of  the  rates 
from  Louisville  to  Macon,  M'ith  maximum  differentials 
above  the  Macon  rates  of  2  cents  on  Classes  A,  B,  C, 
and  D,  and  4  cents  on  Class  F. 

'Higher  than  the  rates  from  Memphis. 


SOUTHEASTERN  TERRITORY  201 

To  Tuscaloosa,  Ala. — The  numbered  class  rates  froii^ 
St.  Louis,  Mo.,  to  Tuscaloosa,  Ala.,  are  made  the  same 
as  the  rates  from  Cincinnati,  Ohio.  The  lettered  class 
rates  are  the  same  as  those  from  St.  Louis  to  Mont- 
gomery. 

The  class  rates  from  Louisville,  Ky.,  and  Jeffersou- 
ville,  Ind.,  are  made  the  Montgomery  differentials  less 
than  the  Cincinnati  rates.  The  Montgomery  differ- 
entials are  as  follows : 

Classes 1       2      3     456ABCDEHF 

Differentials.   10     10     10     8     7     6     4        2       2       2       4       4       4 

The  class  rates  from  Evansville  and  Mount  Vernon, 
Ind.,  and  Henderson  and  Owensboro,  Ky.,  are  made  the 
same  as  the  rates  from  Louisville,  Ky. 

The  class  rates  (except  on  Class  H)  from  Cairo  and 
Brookport,  111.,  Birds  Point  and  Belmont,  Mo.,  and 
East  Cairo,  Columbus,  Hickman,  and  Paducah,  Ky., 
are  made  the  current  Mississippi  Valley  differentials 
less  than  the  rates  from  St.  Louis,  Mo.  The  Missis- 
sippi Valley  differentials  are  as  follows: 

Classes 1      2      3456ABCDEHF 

Differentials.   15     12     10    8    7     6     4      5      5      5      5      10     10 

The  class  rates  from  Memphis,  Tenn.,  are  made  4 
cents  per  100  pounds  less  than  the  rates  from  Cairo,  111. 

(c)    Bases  for  Rates  from  Points  Related  to  Louisville 

From  Cincinnati,  Ohio. — The  class  rates  from  Cincin- 
nati, Ohio,  are  made  the  same  as  those  from  Louisville, 
Ky.,  except  that  to  Montgomery  Sub-Territory**  the 
following  differentials  over  the  Ijouisville  rates  apply: 

Classes 1       2      3456ABCDEHF 

DifferentiaLs.    10     10     10     8     7     6      4       2       2       2       4       4       4 

"See  Map  5,  Atlas  of  Traffic  Maps, 


202        FREIGHT  RATES:  SOUTHERN  TERRITORY 

From  Lexington  and  Frankfort,  Ky. — The  class  rates 
from  Lexington  and  Frankfort,  Ky.,  are  made  the  same 
as  those  from  Cincinnati,  Ohio,  except  that  on  Classes 
C,  D,  and  F  to  Montgomery  Sub-Territory^  the  rates  are 
2  cents  per  100  pounds,  or  4  cents  per  barrel,  lower 
than  the  rates  from  Cincinnati,  or  in  other  \vords, 
the  same  as  those  from  Louisville,  Ky. 

The  rates  from  the  follomng  points  are  made  the 
same  as  the  rates  from  Louisville,  Ky. : 

Belmont,  Mo.  East  Cairo,  Ky.  Mound  City,  111. 

Birds  Point,  Mo.  Evansville,  Ind.  Mount  Vernon,  Ind. 

Brookport,  111.  Henderson,  Ky.  New  Albany,  Ind. 

Cairo,  111.  Hickman,  Ky.  Owensboro,  Ky. 

Columbus,  Ky.  Jeffersonville,  Ind.  Paducah,  Ky. 

From  St.  Louis,  Mo. — The  class  rates  from  St.  Louis, 
Mo.,  are  made  the  following  differentials  higher  than 
the  rates  from  the  Ohio  Elver  Crossings: 

Classes 123456ABCDEHF 

Differentials.   23     19     17     12     10    8      7      8      7      5      8     10     14 

From  Memphis,  Tenn. — The  class  rates  from  Mem- 
phis, Tenn.,  are  made  4  cents  per  100  pounds,  or  8  cents 
per  barrel,  less  than  the  rates  from  Louisville,  Ky.,  ex- 
cept that  to  points  on  and  south  of  the  line  of  the  Sea- 
board Air  Line  Eailway  from  Kiver  Junction  to  Fernan- 
dina,  Fla.,  the  rates  are  1  cent  higher  than  those  from 
New  Orleans,  La.,  on  sugar  and  molasses. 

From  Nashville,  Tenn. — The  class  rates  from  Nash- 
\dlle,  Tenn.,  are  made  the  follomng  differentials  less 
than  the  rates  from  Louisville,  Ky.,  except  as  noted : 

Classes  ....1      2      3      4      5      6ABCDEHF 
Differentials  35    30    25    22     18     13     8      8      7      7      15     21     14 

The  rates  are  not  to  be  less  per  mile  than  the  rates  from 
Louisville,  Ky. 

'See  Map  5,  Atlas  of  Traffic  Maps. 


SOUTHEASTERN  TERRITORY  203 

From  New  Orleans,  La. — To  Attalla  and  Anniston, 
Ala.,  and  groups,  Chattanooga,  Tenn.,  Dalton,  Cham- 
bers, Chattahoochie,  and  Kome,  Ga.,  the  rates  are  the 
same  as  those  to  Atlanta.  To  Huntsville,  Decatur,  Flor- 
ence, Sheffield,  and  Tuscumbia,  Ala.,  the  rates  are  the 
same  as  those  to  Chattanooga,  but  are  not  higher  than 
the  local  scale  of  rates  on  the  Louisville  &  Nashville 
Railroad  from  New  Orleans  to  Decatur,  or  higher  than 
the  Memphis  combination.  To  points  on  and  south  of 
the  line  of  the  Seaboard  Air  Line  Railway  from  River 
Junction  to  Fernandina,  Fla.,  the  rates  are  made  the 
same  as  those  appljdng  from  Nashville,  Tenn.  To  Bir- 
mingham and  group,  and  Montgomery  and  Selma,  Ala., 
the  rates  on  the  numbered  classes  are  made  the  same  as 
the  rates  from  Cincinnati  to  Birmingham.  The  rates  on 
the  other  classes  and  on  all  the  commodities  are  the 
same  as  the  rates  from  Memphis,  Tenn.  To  all  other 
destinations  the  rates  are  the  same  as  those  cur- 
rently in  effect  from  Memphis,  Tenn. 

Certain  commodity  rates,  notably  on  sugar,  rice,  mo- 
lasses, and  tropical  fruits,  are  made  with  regard  to  the 
rates  from  the  Eastern  Cities  and  the  South  Atlantic 
Ports. 

From  Vickshurg,  Natchez,  Greenville,  and  Jackson, 
Miss. — The  rates  are  made  the  same  as  those  from 
New  Orleans,  La.,  except  that  to  points  on  and  south 
of  the  Seaboard  Air  Line  Railway  from  River  Junction 
to  Fernandina,  Fla.,  inclusive,  the  Memphis  rates  are 
applied. 

From  Mobile,  Ala. — To  points  on  a  line  from  Chat- 
tanooga through  Rome  and  Atlanta,  Ga.,  and  Opelika, 
Ala.,  the  rates  are  made  the  following  differentials  be- 
low the  New  Orleans  rates: 

Classes 1       2      3      456ABCDEHF 

Differentials..   10     10     10     10    5    5     4      4      4      4      5     10     8 


204       FREIGHT  RATES :  SOUTHERN  TERRITORY 

Various  commodities  take  special  differentials  and 
others  take  class  differentials,  but  the  rates  are  not 
less  than  those  from  the  South  Atlantic  Ports.  To  all 
other  destinations  the  rates  are  made  the  differentials 
named  under  the  New  Orleans  rates  without  regard  to 
the  rates  from  the  South  Atlantic  Ports. 

From  Pensacola,  Fla. — To  Albany,  Ga.,  the  rates  are 
made  the  same  as  those  from  Mobile,  but  not  higher 
than  the  combination  of  rates  to  and  from  River  Junc- 
tion, Fla.  To  South  Atlantic  coast  points  and  to  Flor- 
ida destinations,  the  rates  are  made  the  following  dif- 
ferentials less  than  the  rates  from  Mobile: 

Classes 123456ABCDEHF 

Differentials 7777443      3      3      3      4      7      6 

The  rates  to  all  other  destinations  are  the  same  as  the 
rates  from  Mobile. 

(d)  Adjustment  from  Mississippi  Valley  Points 

From  Gulfport,  Miss. — The  rates  are  made  the  same 
as  the  rates  from  New  Orleans,  La. 

From  Helena,  Ark. — The  rates  are  made  1  cent  per 
100  pounds  higher  than  the  rates  from  Greenville,  Miss. 

From  Meridian,  Miss. — The  rates  are  made  the  same 
as  the  rates  from  Mobile,  Ala.,  with  continuous  locals 
and  combination  as  maxima.  There  are  exceptions  on  a 
few  commodities. 

From  Columbus,  Miss. — To  all  points  on  and  east  of 
the  Chattanooga-Birmingham-Selma-Montgomery-Pensa- 
cola  Line,  the  rates  on  substantially  all  articles  manu- 
factured at  Columbus  are  made  the  same  as  the  rates 
from  Greenville,  Miss.,  but  not  less  than  those  from 
Meridian,  Miss. 


SOUTHEASTERN  TERRITORY  205 

From  Corinth,  Miss. — To  substantially  the  entire  ter- 
ritory, tlie  rates  on  articles  manufactured  thereat  are 
made  the  same  as  the  rates  from  Memphis,  Tenn.  The 
same  basis  also  applies  on  grain,  except  that  to  South 
Atlantic  coast  points  the  rates  are  3  cents  higher  than 
the  Memphis  rates. 

From  Ellisville,  Hattiesburg,  Laurel,  and  Newton, 
Miss. — The  rates  are  made  the  same  as  the  rates  from 
Vicksburg,  Miss. 

From  junction  points  in  West  Tennessee  north  of 
Jackson. — To  practically  the  entire  territory,  the  rates 
on  substantially  all  commodities  of  manufacture  and  pro- 
duction are  made  the  same  as  the  rates  from  Cairo  or 
Louisville. 

From  Jackson,  Tenn. — The  Memphis  rates  apply  on 
barrel  material,  engines,  machinery,  and  furniture.  On 
classes  and  other  commodities  the  Cairo  rates  apply, 
except  that  to  the  Huntsville,  Decatur,  and  Florence 
groups  the  Memphis  rates  are  authorized. 

From  Johnsonville,  Tenn. — The  rates  are  made  2 
cents  per  100  pounds  less  than  the  rates  from  Padu- 
cah,  Ky. 

From  Perryville,  Tenn. — The  rates  are  made  2  cents 
per  100  pounds  less  than  the  rates  from  Cairo. 

From  non-competitive  points,  the  lowest  combination 
applies,  except  that  in  various  cases  covering  com- 
modity rates  (such  as  on  lumber  and  on  some  manu- 
factured articles  on  which  the  rates  are  made  with 
relation  to  those  from  adjacent  common  points)  the 
basis  is  the  lowest  combination  with  continuous  mileage 
rates,  where  such  exist,  as  maxima. 

To  intermediate  points,  the  basis  is  the  lowest  com- 
bination with  continuous  mileage  rates,  where  such  are 
applicable,  as  maxima. 


206        FREIGHT  RATES :  SOUTHERN  TERRITORY 

(e)    Adjustment   from    Kentucky-Tennessee    Territory 

From  Nashville,  Tenn. — The  basis  has  been  shown 
under  that  from  the  Ohio  River  Crossings,  because  the 
relationship  is  so  rigidly  maintained. 

From  Clarksville  (depot),  Tenn. — The  rates  are  made 
the  following  differentials  higher  than  the  rates  from 
Nashville : 

Classes 1       2      3456ABCD       EHF 

Differentials...    11     11     11     6644       4       4       4       6       6       7 

From  junction  points  generally,  and  from  a  large 
number  of  local  points  intermediate  to  the  Ohio  River, 
rates  are  made  in  close  relationship  to  the  Ohio  River 
or  to  some  point  taking  the  same  rates.  For  instance, 
the  rates  from  central  Kentucky  junctions  are  made 
the  same  as  the  rates  from  Cincinnati,  or  from  Lexing- 
ton, or  from  Louisville,  as  the  case  may  be.  Some 
places  carry  such  a  basis  with  exceptions.  Again,  the 
rates  from  some  of  these  points  are  made  low  differ- 
entials higher  than  the  rates  from  the  Ohio  River. 
From  some  of  the  Tennessee  points,  the  rates  are  made 
with  relation  to  basing  points  within  that  state.  For 
example,  some  of  the  rates  from  Columbia,  Tenn.,  are 
made  with,  relation  to  those  from  Nashville;  rates  from 
Knoxville  are  made  fixed  differentials  over  the  rates 
from  Chattanooga,  and  the  like. 

To  points  intermediate  to  the  basing  points,  the  basis 
is  the  lowest  combination  with  continuous  mileage  rates, 
where  such  are  applicable,  as  maxima. 

(/)  Adjustment  from  Central  Freight  Association  and 

Western  Territories 

The  basis  for  rates  from  the  so-called  Central  Freight 
Association  Territory  is  the  lowest  combination  on  the 


SOUTHEASTERN  TERRITORY  207 

Ohio  Eiver  or  the  Virginia  Gateways  using  the  full 
rates  from  said  basing  points.  In  a  few  instances, 
notably  from  Chicago,  Milwaukee,  Indianapolis,  and 
related  points,  there  are  in  effect  proportional  rates 
to  the  Ohio  River  (subject  to  the  Southern  Classifica- 
tion) which  range  below  the  local  rates  thereto  and 
which  permit  of  the  publication  of  through  rates. 

From  the  territory  generally,  however,  the  local  rates 
up  to  the  river  crossings  or  Virginia  Gateways  (subject 
to  the  Official  Classification)  are  applied  both  in  mak- 
ing and  dividing  the  rates.  Through  tariffs  cannot 
readily  be  published  because  of  the  classification  dif- 
ferences. 

The  proportional  rates  from  some  of  the  more  im- 
portant points  in  Central  Freight  Association  Territory 
to  the  Ohio  River  Crossings  are  indicated  in  Table  49. 

TABLE  49 

Proportional  Class  Rates  from  Points  Named  to  Ohio 

River  Crossings 


To  Ohio  River 

Rates 

in  Cents  peh 

.  100  Pounds  Except 

AS  Noted 

Crossings 
From 

Classes 

1 

1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F' 

Chicago 

35 

30 

22 

15 

13 

10 

12 

12 

10 

10 

13 

15 

20 

Peoria 

35 

30 

22 

15 

13 

10 

12 

12 

10 

10 

13 

15 

20 

Indianapolis 

22 

19^ 

17^ 

11 

8^ 

7 

8 

8 

5 

6 

9 

9 

10 

Davenport 

41 

35 

26 

18 

15 

12 

14 

14 

12 

12 

15 

17 

24 

Milwaukee 

41 

35 

26 

18 

15 

12 

14 

14 

12 

12 

15 

17 

24 

'Governed  by  the  Southern  Classification. 
'Per  barrel. 


These  proportional  rates  are  applicable  to  all  the 
Ohio  Eiver  Crossings,  from  Cairo,  111.,  to  Cincinnati, 
Ohio,  inclusive,  and  are  combined  with  the  published 
rates  applying  from  the  various  crossings. 


208        FREIGHT  RATES :  SOUTHERN  TERRITORY 

2.  Outbound  Adjustment  from  Southeastern  Territory 

The  general  basis  for  outbound  rates  from  South- 
eastern Territory  to  points  north  of  the  Ohio  and 
Potomac  rivers  and  west  of  the  Mississippi  River  corre- 
sponds with  the  inbound  basis;  that  is  to  say,  the  class 
and  a  few  commodity  rates  northbound  to  the  North 
Atlantic  Ports,  the  Eastern  Cities,  the  Virginia  Cities, 
interior  eastern  points,  the  Ohio  River  Crossings,  and 
the  Mississippi  River  Crossings  correspond  with  those 
in  the  reverse  direction.  The  northbound  commodity 
rates  generally,  however,  do  not  cover  the  same  com- 
modities as  the  southbound  rates,  and  are  not  to  be 
compared  therewith.  While  the  same  general  rela- 
tionship applies  to  a  given  destination  or  section  as 
between  the  common  points,  entirely  different  elements 
enter  into  the  considerations  which  determine  the  meas- 
ure of  the  rates,  and  for  this  reason  commodity  rates 
in  one  general  direction  should  rarely  be  associated 
with  those  in  another. 

For  illustration,  while  the  rates  on  an  article  of  com- 
mon production  at  Macon,  Atlanta,  Birmingham,  or 
Chattanooga  to  the  Ohio  River  are  made  mth  regard 
each  to  the  other,  the  determining  causes  for  the  rates 
to  the  Ohio  River  do  not,  in  essence,  enter  into  those 
making  the  rates  to  the  East.  The  commodity  rates 
to  the  Ohio  River  are  fixed  with  regard  to  the  competi- 
tion that  will  have  to  be  met  at  the  Ohio  River  and  at 
points  north.  The  rates  made  to  Memphis,  New 
Orleans,  etc.,  take  into  account  the  competition  that  is 
met  locally  at  those  points,  or  from  points  west  of 
the  Mississippi  River,  or  from  points  of  production  at 
or  north  of  the  Ohio  River.  As  a  rule,  the  rates  are 
fixed  to  each  of  the  Ohio  River  Crossings  in  due  rela- 
tion one  to  the  other;  that  is,  if  a  certain  rate  is  neces- 


SOUTHEASTERN  TERRITORY  209 

sary  to  Cincinnati  to  cause  a  free  movement  to  that 
point,  the  rates  to  Louisville,  Evansville,  and  Cairo 
(except  as  noted  below)  are  readjusted  to  correspond. 
Similarly,  while  under  ordinary  conditions  the  rates 
to  the  eastern  territories,  including  the  Virginia  Gate- 
ways, are  adjusted  without  particular  regard  to  the 
rates  made  to  the  West,  but  to  meet  conditions  found 
in  the  East,  the  ordinary  relationship  between  the  ter- 
minal points  is  maintained. 

It  is  almost  invariably  the  case  that  the  rates  to 
Central  Freight  Association  Territory  are  adjusted  on 
the  lowest  combination  through  the  Ohio  River  Cross- 
ings. The  measure  of  competition  which  is  met  as  con- 
cerns each  of  the  commodity  rates  determines  whether 
it  is  necessary  to  establish  proportional  rates  to  the 
Ohio  River  below  the  full  rates  thereto.  A  great  ma- 
jority of  the  commodity  rates  are  issued  to  the  Ohio 
River  proper,  the  same  figures  being  charged  on 
through  traffic  to  destinations  north,  but  in  some  cases 
proportional  rates  are  established,  the  most  notable  of 
these  being  the  adjustment  of  the  cotton  factory  prod- 
ucts. The  rate  from  the  great  central  group  of  south- 
em  mills  to  Chicago  was  made  the  same  as  the  rate 
from  the  New  England  mills  to  Chicago.  From  this 
figure  was  deducted  the  proportional  rate  charged 
by  the  lines  from  the  north  bank  of  the  Ohio  River, 
the  balance  being  the  figure  used  to  establish  a  pro- 
portional rate  to  the  Ohio  River,  which  is  used  in  con- 
structing through  rates  to  all  destinations  in  the  north 
and  central  West. 

An  exception  is  above  noted  concerning  the  relative 
basis  as  between  the  Ohio  River  Gateways.  This  ex- 
ception relates  to  the  lumber  and  pig  iron  rates.  In 
the  case  of  the  first,  because  of  competition  from  the 
Arkansas  and  Louisiana  mills,  from  which  a  low  rate 


210        FREIGHT  RATES :  SOUTHERN  TERRITORY 

was  made  to  Cairo  and  increasing  rates  to  each  of  the 
Ohio  River  Crossings  above  Cairo,  a  similar  adjust- 
ment has  been  followed  by  the  southern  lines,  which 
make  a  lower  rate  to  Cairo  than  to  any  of  the  crossings, 
the  rate  increasing  at  each  crossing  above  until  Cin- 
cinnati is  reached.  The  through  rates  to  destinations 
north  are  established  on  the  lowest  combination  and 
apply  via  all  open  routes.  For  the  pig  iron  rates,  de- 
signed to  enable  a  free  movement  as  against  the  northern 
furnaces,  there  is  not  a  regular  adjustment  between  the 
several  crossings,  either  to  those  points  proper,  or  in 
the  basing  rates  used  in  constructing  through  rates  on 
the  lowest  combination. 

An  important  deviation  from  the  principle  of  con- 
structing rates  to  and  from  local  or  intermediate 
points  as  heretofore  outlined  is  found  in  the  rates  on 
articles  manufactured  or  produced  at  such  points 
which  are  in  commercial  competition  with  those  made 
or  produced  at  adjacent  common  points.  The  element 
of  market  competition  early  led  the  railroads  to  the 
conclusion  that  the  manufacturers  and  producers  at 
non-competitive  points  could  not  successfully  compete 
with  those  at  competitive  points,  unless  they  were 
given  rates  relatively  the  same  as  those  of  the  adjacent 
competitive  points.  A  cotton  factory,  for  example, 
located  at  a  station  on  the  Southern  Railway,  say  be- 
tween Atlanta  and  Macon,  has  its  rates  adjusted  to  be 
not  higher  than  those  of  the  competing  factory  at  Macon 
when  the  movement  is  northward  through  Atlanta,  and 
not  higher  than  the  rates  from  Atlanta  when  the  move- 
ment is  through  Macon.  In  a  broad  sense,  therefore, 
as  concerns  such  cases,  there  is  no  variation  from  the 
long-and-short-haul  principle  of  the  Act  to  Regulate 
Commerce. 


SOUTHEASTERN  TERRITORY  211 

Many  of  the  lines  serving  Southern  Territory  publish 
numerous  commodity  tariffs,  among  the  more  important 
of  which  are  those  applying  upon  cotton,  cotton  factory 
products,  Imnber,  and  domestic  and  tropical  fruits.  The 
number  of  these  tariffs  is  being  increased  from  year  to 
year.  The  tariff  publications  of  the  various  committees 
in  this  territory  are  very  voluminous  and  in  general 
cover  class  rates  and  general  commodity  rates. 

3.  Fourth  Section  Orders 

The  orders  of  the  Interstate  Commerce  Commission 
affecting  adjustments  in  this  territory  are  set  forth  in 
Appendix  B. 


CHAPTER  Xm 
carolina  rate  territory 

1.  Basic  Principles 

The  rates  between  various  gateways  (Virginia  Cities, 
Paint  Rock,  N.  C,  Johnson  City,  Tenn.,  Atlanta,  Athens, 
and  Augusta,  Ga.,  and  Charleston  and  Columbia,  S.  C.) 
applicable  on  traffic  originating  at  or  destined  to  points 
within  this  territory  are  the  local  rates  of  the  initial 
lines  in  most  instances;  in  some  cases,  however,  they 
are  the  proportional  rates  made  less  than  the  local 
rates.  As  a  rule,  these  rates  are  graded  according  to 
distance,  although  the  competition  between  the  various 
places  within  the  territory  has  often  brought  about 
figures  below  the  level  of  the  distance  tariffs  of  the 
several  railroads. 

Generally,  the  rates  at  intermediate  points  do 
not  exceed  those  at  points  beyond;  but  there 
are  exceptions  in  the  case  of  places  intermediate  to 
Wilmington  and  other  points  in  eastern  North  Carolina 
located  on  navigable  waters,  and  at  Columbia,  S.  C, 
which  is  affected  also  by  water  competition.  The  rates 
from  the  Virginia  Cities  to  these  water-competitive 
places  are  all  made  on  a  differential  relation  to  the 
rates  from  Baltimore,  which  are  directly  affected  by 
water  competition.  Also,  the  rates  from  the  Virginia 
Cities  to  certain  of  the  points  intermediate  to  the  south- 
eastern basing  points  (Atlanta,  Athens,  Augusta, 
Charleston,  Savannah,  etc.)  are  made  higher  than  the 
rates  to  said  cities. 

212 


CAROLINA  RATE  TERRITORY  213 

2.  Adjustment  from  Eastern  Port  Cities 

The  rail-and-water  rates  from  tlie  Eastern  Port 
Cities  to  Wilmington,  Fayetteville,  and  New  Bern,  N.  C, 
and  Columbia,  S.  C,  are  made  to  meet  the  competition 
via  the  water  lines.  The  rail-and-water  rates  from 
Baltimore  are  made  differentials  over  the  rates  from  the 
Virginia  Cities,  and  in  turn  the  rates  from  Philadelphia 
and  New  York  are  made  differentials  over  the  rates 
from  Baltimore,  and  the  rates  from  Boston  differentials 
over  the  rates  from  New  York.  The  all-rail  rates  to 
all  of  these  destinations  are  then  adjusted  on  differen- 
tials higher  than  the  port  rail-and-water  rates. 

3.     From  Interior  Eastern  Points  East  of  Buffalo- 
Pittsburgh  Territory 

The  all-rail  rates  from  this  territory  are  made  as  fol- 
lows: From  points  taking  the  same  proportions  up  to 
the  Potomac  Gateways,  as  from  Boston,  New  York, 
Philadelphia,  or  Baltimore,  respectively,  the  respective 
all-rail  port  rates  are  applied  therefrom.  From  points 
taking  higher  proportions  to  the  gateways  than  from 
the  ports,  the  through  rates  are  made  as  much  higher 
than  the  port  rates  as  represented  by  the  differences 
in  the  proportions.  The  all-rail  rates  having  been 
fixed,  the  rail-and-water  rates  are  operated  on  differen- 
tials less  than  the  rates  via  all  rail. 

4.  From  Buffalo-Pittsburgh  Territory 

The  rates  from  this  territory,  heretofore  described, 
are  made  on  combinations  to  the  various  gateways, 
plus  the  established  local  or  proportional  rates  south, 


214        FREIGHT  RATES :  SOUTHERN  TERRITORY 

observing  as  maxima  the  following  differentials  over  the 
ciorresponding  all-rail  rates  from  New  York: 

Classes 1  2  3         4        5        6 

Differentials 15        13         11         9        7        6 

The  rates  so  constructed  are  operated  by  all-rail  and 
rail-and-water  lines  alike. 


TABLE  50 

Class  Rates  from  Richmond,   Va.,  to  North  and  South 
Carolina  Destinations 


From 

Richmond,  Va., 

To 

Clio,  S.  C 

McColl,  S.  C.» 

Hubbard,  S.  C 

Maxton,  N.  C 

Bennettsville,  N.  C. . . . 

Everetts,  N.  C 

Cheraw,  S.  C 

Osborne,  N.  C 

Norwood,  N.  C 

Albemarle,  N.  C 

Whitney,  N.  C 

Darlington,  S.  C 

Gibson,  N.  C 

Pembroke,  N.  C 

Moss  Neck,  N.  C 

Lumberton,  N.  C 

Hope  Mills,  N.  C 

Alma,  N.  C 

Old  Hundred,  N.  C.  .. 
Marion,  S.  C 

Wilmington,  N.  C 

Page's  MiU,  S.  C.» 

Florence,  S.  C 

Zebulon,  N.  C.» 

Youngsville,  N.  C 

Henderson,  N.  C 

Ridgeway,  N.  C.« 


Rates    in    Cents    per    100    Pounds 
Except  as  Noted 


Classes' 
1     2     3     4     5     6ABCDEHF* 


80  70  60  50  40  32  22  28  25  22  41  47  50 


68  58  48  38  33  25  18  24  23  20  33  38  46 


80  70  60  50  40  32  22  28  25  22  41  47  50 


50  40  31  26  20  15  13  13  13  11  22  23  22 


80  70  60  50  40  32  22  28  25  22  41  47  50 


61  51  42  32  28  21  17  22  21  18  28  32  42 


CAROLINA  RATE  TERRITORY 


215 


TABLE  50— Continued 

Class  Rates  from  Richmond,  Va.,  to  North  and  South 

Carolina  Destinations 


From 

Richmond,  Va., 

To 

Rates    in     Cents    per     100    Pounds 

Except  as  Noted 

Classes' 
123456ABCDEHF* 

Jonesboro,  N.  C 

Manley,  N.  C 

Aberdeen,  N.  C 

Lemon  Springs,  N.  C 

Sanford,  N.  C 

Starr,  N.  C 

68  58  48  38  33  25  18  24  23  20  33  38  46 

Hemp,  N.  C 

Hallison,  N.  C 

Candor,  N.  C.^ 

Asheboro,  N.  C 

Asbury,  N.C." 

Newton,  N.  C 

80  70  60  50  41  32  22  30  27  23  43  51  53 

Winston-Salem,  N.  C 

61  51  42  32  28  21  17  22  21  18  28  32  42 

Lincolnton,  N.  C 

80  70  60  50  41  32  22  30  27  23  43  51  53 

Mt.  Holly,  N.  C.5 

78  68  58  48  40  31  21  26  27  23  40  49  53 

Orangeburg,  S.  C 

85  75  62  50  41  34  24  29  28  24  44  47  50 

Sumter,  S.  C 

82  72  62  50  40  32  23  29  28  23  43  47  50 

Woodford,  S.  C.^ 

85  75  62  50  41  34  24  29  28  24  44  47  50 

'Governed  by  the  Southern  Classification. 
*Per  barrel. 
'Intermediate  points. 

5.  From  Ohio  River  Crossings 


(a)  From  Cincinnati,  Ohio 

The  base  rates  from  Cincinnati  to  the  Virginia  Gate- 
ways were  calculated  bj'^  assimilating  the  rates  from 
Chicago  to  the  Virginia  Cities,  proper,  to  the  Southern 
Classification  and  deducting  therefrom  the  proportional 
rates  from  Chicago  to  Cincinnati  (applicable  on  south- 


216        FREIGHT  RATES :  SOUTHERN  TERRITORY 

ern  business^),  the  resultant  balance  being  base  rates. 

When  for  destinations  on  and  north  of  an  imaginary 
line  dra^vn  from  Cleveland,  Tenn.,  through  Murphy, 
N.  C,  Walhalla,  Seneca,  Anderson,  Belton,  Abbeville, 
Greenwood,  Newberry,  Alston,  and  Columbia,  S.  C,  to 
Wilmington,  N.  C,  the  base  rates  from  Cincinnati  to  At- 
lanta were  calculated  by  adding  the  following  differ- 
entials to  the  rates  from  Nashville  to  Atlanta,  proper : 

Classes 123456ABCDEHF 

Differentials....   6533332       2       2       2       2       2       4 

When  for  destinations  south  of  the  Walhalla- Wilming- 
ton Line,  the  Cincinnati- Atlanta  base  rates  are  the  same 
as  the  rates  from  Cincinnati  to  Atlanta,  proper. 

In  a  similar  way,  the  base  rates  from  Cincinnati  to 
Athens,  Augusta,  and  Charleston  were  worked  out. 

The  base  rates  from  Cincinnati  to  Paint  Rock,  Tenn.- 
N.  C,  are  75  per  cent  (representative  of  comparative 
distances)  of  the  base  rates  to  Atlanta.  The  rates  to 
Johnson  City,  Tenn.,  are  the  same  as  those  to  Paint 
Rock.  The  rates  to  Columbia  are  the  rates  to  that 
point,  proper. 

Table  51  sets  forth  the  basing  rates  from  Cincinnati 
when  for  destinations  on  and  north  of  the  Walhalla- 
Wilmington  Line,  while  Table  52  sets  forth  the  rates 
when  for  destinations  south  of  this  line. 

While  the  class  basing  rates  only  are  exhibited,  numer- 
ous commodity  figures  are,  in  effect,  worked  out  as 
described. 

(h)  From  Covington,  Newport,  Louisville,  and  Lexing- 
ton, Ky.,  and  Jeffersonville,  Ind. 

The  rates  from  Cincinnati  having  been  fixed,  the  rates 
from   Covington,   Newport,   Louisville,   and   Lexington, 

iSee  page  217 


CAROLINA  RATE  TERRITORY 


217 


TABLE  51 

Basing  Rates"'from  Cincinnati,  Ohio,  When  for  Destina- 
tions On  and  North  of  the  Walhalla- 
WiLMiNGTON  Line 


From 
Cincinnati,  Ohio, 

TO 


Virginia  Cities 

Paint  Rock,  N.  C. . 
Johnson  City,  Tenn. 

Atlanta,  Ga 

Augusta,  Ga 

Athens,  Ga 

Charleston,  S.  C . . . . 
Columbia,  S.  C .  .  .  . 


Rates  in  Cents  per  100  Pounds  Except 
AS  Noted 


12     3    4 


Classes' 
5    6    A    B 


C    D   E    H   P 


32  28  22  15  12  10  10  15  11  11  14  12  22 

54  48  43  35  29  24  17  23  17  14  26  28  29 

72  64  67  46  38  32  22  30  23  19  35  37  38 

79  69  61  49  42  34  22  32  25  21  38  39  42 

78  65  60  56  47  38  29  32  25  21  32  32  42 
107  92  81  65  53  44  28  42  34  30  47  60  60 


'Governed  by  the  Southern  Classification. 
'Per  barrel. 


TABLE  52 
Basing  Rates  from  Cincinnati,  Ohio,  When  for  Destina- 
tions South  of  the  Walhalla- 
Wilmington  Line 


From 
Cincinnati,  Ohio, 

TO 


Virginia  Cities 

Paint  Rock,N.  C { 

Johnson  City,  Tenn j 

Atlanta,  Ga 

Augusta,  Ga 

Athens,  Ga 

Charleston,  S.  C 

Columbia,  S.  C 


Rates  in  Cents  per  100  Pounds  Except 
AS  Noted 


Classes' 
1      23456ABCDEHF' 


32  28  22  15  12  10  10  15  11  11  14  12  22 

74  65  59  47  39  31  21  27  21  18  36  36  36 

98  87  78  63  52  41  28  36  28  24  48  48  48 

103  90  81  65  54  43  28  38  30  26  50  50  52 

95  80  75  70  58  46  35  38  29  25  40  40  50 
107  92  81  65  53  44  28  42  34  30  47  60  66 


'Governed  by  the  Southern  Classification. 
*Per  barrel. 


218       FREIGHT  RATES :  SOUTHERN  TERRITORY 

Ky.,  and  Jeffersonville,  Ind.,  are  made  the  same.  All 
the  Ohio  River  points  below  Louisville  are  made  the 
following  differentials  higher  than  the  rates  from  Cin- 
cinnati when  the  destination  is  on  or  north  of  the 
Walhalla- Wilmington  Line : 


Classes 

1 

2     3    4    5     6 

A 

B 

C 

D 

E 

H 

F 

Differentials. . 

10 

10    8    8    6    4 

4 

2 

2 

5 

6 

4 

To  territory  south  of  the  Walhalla- Wilmington  Line, 
the  rates  from  the  lower  Ohio  River  Crossings  are  the 
same  as  the  rates  from  Cincinnati. 

(c)  From  Memphis,  Tenn. 

The  rates  from  Memphis  to  the  territory  on  and 
north  of  the  Walhalla-Wilmington  Line  are  on  the  fol- 
lowing differential  relation  with  Cincinnati: 

Classes 1     2    3     4     5     6ABCDEHF 

Over  Cincinnati  rates  ..8    86    6    4     2..    2....    3     4.. 
Under  Cincinnati  rates 2    2    ..    ..    4 

The  rates  from  Memphis  to  the  territory  south  of  the 
Walhalla-Wilmington  Line  are  made  the  following  dif- 
ferentials lower  than  the  Cincinnati  rates: 

Classes 123456ABCDEHF 

Differentials....   4444444       4       4       4       4       4       8 

6.  From  Gulf  Ports 

From  New  Orleans,  La.,  the  rates  are  made  the  fol- 
lowing differentials  higher  than  the  rates  from  Atlanta, 
proper : 

Classes  ...1       2      3      4      5      6ABCDEHF 
Differentials  26     23     21     20     13     13     10     10     10     10     12     18    20 

The  through  rates  so  made  shall  not  be  less  than  the 
rates  from  Memphis,  nor  less  than  the  following  differ- 
entials over  the  rates  from  Montgomery: 


CAROLINA  RATE  TERRITORY  219 

Classes  ....1       2      3      456ABCDEHF 
Differentials  10     lu     10     10    5     5     4      4      4      4      5      10     8 

From  Mobile,  Ala.,  and  Pensacola,  Fla.,  the  rates  are 
made  the  following  differentials  less  than  the  rates 
from  New  Orleans: 

Classes 1       2      3      456ABCDEHF 

Differentials..   10     10     10     10    5    5     4      4      4      4      5     10     8 

Various  commodity  exceptions  are  provided. 
7.  From  Mississippi  Valley  Territory 

From  Greenville,  Greenwood,  Vicksburg,  and  Winona, 
Miss.,  the  rates  are  the  same  as  those  from  New  Orleans. 

From  junction  points  south  of  the  Memphis  Division 
of  the  Southern  Railway  and  on  and  east  of  the  Mobile 
&  Ohio  Railway,  the  rates  are  made  the  following 
differentials  under  the  rates  from  New  Orleans: 

Classes 1       2      3      456ABCDEHF 

Differentials   10     10     10     10    5    5     4       4      4      4      5      10     8 

On  specific  articles  manufactured  at  various  points 
in  Mississippi  Valley  Territory,  the  rates  are  made  the 
same  as  those  from  Cairo,  Memphis,  Vicksburg,  New 
Orleans,  etc.,  as  the  case  may  be.  Otherwise,  through 
rates  are  made  on  the  lowest  combination  from  all 
points  not  specifically  mentioned. 

8.  From  Kentucky-Tennessee  Territory 

(a)  From  Nashville,  Tenn. 

When  the  destination  is  on  or  north  of  the  Walhalla- 
Wilmington  Line,  the  rates  on  Classes  B,  C,  and  D  are 
made  2  cents  less  and  on  Class  F  4  cents  less  than  the 
rates  from  Louisville. 


220       FREIGHT  RATES :  SOUTHERN  TERRITORY 

The  rates  on  other  classes,  to  destinations  south  of 
the  Virginia-North  Carolina  state  line  and  north  of 
Smithfield,  Goldsboro,  and  Kinston,  N.  C,  on  the 
Atlantic  Coast  Line  Kailroad,  and  Cary,  N.  C,  on  the 
Seaboard  Air  Line  Railway,  including  Cary,  are  the 
same  as  the  rates  from  Louisville,  Ky. 

To  points  other  than  the  Virginia  Cities  on  and  north 
of  the  Danville  &  Western  Railway,  including  the  Leaks- 
ville  Branch,  and  to  points  on  and  north  of  the  Southern 
Railway,  from  Danville  to  Norfolk,  including  the  Vir- 
ginia and  the  Hitchcock  Mill  branches,  and  to  stations 
on  the  Seaboard  Air  Line  Railway  and  the  Atlantic 
Coast  Line  Railroad  in  Virginia,  the  rates  are  made 
the  following  differentials  less  than  the  rates  from 
Louisville : 

Classes 1     23456A     E     H 

Differentials 6533320      2      2 

To  all  other  destinations  north  of  the  Walhalla- 
Wilmington  Line,  the  rates  are  made  the  following 
differentials  less  than  the  rates  from  Louisville: 

Classes 1     23456AE      H 

Differentials Q^5    3     3    3    3     2      2      2 

To  that  portion  of  Carolina  Territory  lying  south  of 
the  Walhalla-Wilmington  Line,  the  rates  are  made  the 
following  differentials  less  than  the  rates  from  Louis- 
ville : 


Classes  ....    1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E     H 

F 

Differentials  35 

30 

25 

22 

18 

13 

8 

8 

7 

7 

15    21 

14 

The  maximum  for  each  respective  through  rate  is  the 
same  per  ton  per  mile  as  that  from  Louisville. 

(h)  From  Clarksville,  Tenn. 

To    all   destinations   both   north   and    south   of   the 
Walhalla-Wilmington  Line,  the  rates  are  made  the  fol- 


CAROLINA  RATE  TERRITORY  221 

lowing  differentials  higher  than  the  rates  from  Nash- 
ville: 

Classes 1       2      3456ABCDEHF 

Differentials...   13     13     13    8    8    6     6      6      6      6      8      8     11 

(c)  From  Knoxville,  Tenn. 

To  Carolina  Territory  south  of  the  Walhalla- 
Wilmington  Line,  -the  rates  are  made  the  following 
differentials  higher  than  the  rates  from  Chattanooga: 

Classes 123456ABCDEHF 

Differentials 12    976543      3      3      3      3      3      6 

The  rates  are  not  higher  than  the  rates  from  Nashville. 

To  Carolina  Territory  on  and  north  of  the  Walhalla- 
Wilmington  Line,  the  rates  are  made  the  same  as  those 
from  Chattanooga,  although  the  exceptions  to  this  basis 
are  quite  numerous. 

From  other  places  the  rates  are  made  either  in  defi- 
nite relationship  to  the  Ohio  River,  Memphis,  or  Nash- 
ville, or  on  the  lowest  combination. 

9.  Feom  Southeastekn  Territory 

{a)  From  Huntsville,  Decatur,  Sheffield,  Florence,  Tus- 
cumhia,  and  Riverton,  Ala. 

The  rates  from  Huntsville  and  Decatur,  Ala.,  are 
made  the  same  as  the  rates  from  Nashville.  From 
Sheffield,  Florence,  Tuscumbia,  and  Eiverton,  Ala.,  the 
rates  are  made  the  same  as  those  from  Nashville,  except 
that  on  Classes  B  and  F  the  rates  are  made  2  cents 
higher  and  on  Classes  C  and  D  1  cent  higher  than  the 
Nashville  rates. 


222        FREIGHT  RATES :  SOUTHERN  TERRITORY 
{h)  From  Chattanooga,  Tenn. 

To  points  on  and  north  of  a  line  beginning  at  Paint 
Rock;  thence  via  the  Southern  Railway,  through  Ashe- 
ville,  Newton,  Statesville,  Salisbury,  Greensboro,  and 
Durham,  N.  C,  to  Raleigh,  N.  C. ;  thence  via  the  Atlantic 
Coast  Line  Railroad  to  Norfolk;  and  thence  south  of 
a  line  from  Paint  Rock,  through  Roanoke,  to  Ports- 
mouth, the  rates  are  made  the  same  as  those  from 
Atlanta. 

To  points  south  of  the  above-described  territory, 
except  to  destinations  in  Georgia,  the  rates  are  made 
the  following  differentials  higher  than  the  rates  from 
Atlanta,  with  minimum  through  rates  in  certain  cases: 

Classes 123456ABCDEHF 

Differentials 10    876543      3      3      3      4      4      6 

To  such  Georgia  destinations  as  are  in  Carolina  Ter- 
ritory, the  rates  are  made  the  following  differentials 
over  the  Atlanta  rates,  mth  rates  to  Elberton  and 
Athens,  Ga.,  as  minima  in  certain  cases : 


Classes 

.    1 

2 

3     4    5    6 

A 

B 

C 

D 

E 

H 

F 

Differentials. . 

.   15 

12 

10    8    7    5 

4 

4 

4 

4 

5 

5 

8 

(c)    From   Atlanta,   Athens,    and   Augusta,    Ga.,    and 

Charleston,  S.  C. 

The  rates  from  Atlanta,  Athens,  and  Augusta,  Ga., 
and  Charleston,  S.  C,  are  the  local  rates  or  specific 
rates  established  by  the  individual  lines. 

From  other  common  and  junction  points,  the  rates 
are  made  either  the  same  as  or  differentials  higher 
than  the  rates  from  Atlanta  or  Chattanooga,  as  the 
case  may  be.  From  local  points  the  rates  are  made 
with  relation  to  those  from  the  common  points,  either 
on  a  differential  basis  or  on  the  lowest  combination. 


TEST  QUESTIONS 

These  questions  are  for  the  student  to  use  in  testing 
his  knowledge  of  the  assignment.  The  answers  shoula 
be  written  out,  but  are  not  to  be  sent  to  the  University. 

1.  What  is  the  largest  rate-making  territory  in  Southern 
Classification  Territory? 

2.  What  is  the  occasion  of  the  prominence  that  Atlanta, 
Ga.,  enjoys  as  a  rate-making  point? 

3.  What  in  a  measure  fixes  the  rates  from  the  West  to 
Atlanta,  Ga.? 

4.  How  did  the  constructive  mileage  from  Baltimore,  Md., 
to  Atlanta,  Ga.,  compare  with  the  actual  mileage  from  Louis- 
ville, Ky,,  to  Atlanta,  Ga.? 

5.  What  causes  occasion  a  departure  from  the  distance 
principle  of  rate-making  in  the  southeast? 

6.  What  is  a  differential  route?  What  led  to  the  estab- 
lishment of  differentials? 

7.  On  traffic  from  Seaboard  Territory  to  points  adjacent 
to  Mobile,  Ala.,  and  Pensacola,  Fla.,  what  route  initiates  the 
rates? 

8.  How  were  the  rates  from  New  York  City  to  Atlanta, 
Ga.,  made  in  the  first  instance? 

9.  What  causes  led  to  a  reduction  in  the  original  rates  to 
Atlanta,  Ga.? 

10.  If  a  reduction  is  made  in  the  rates  to  Atlanta,  Ga.,  will 
it  result  in  a  corresponding  reduction  in  the  rates  to  Rome,  Ga.? 

11.  Was  the  long-and-short-haul  clause  observed  on  traffic 
from  the  East  to  Atlanta,  Ga.?     If  so,  to  what  extent? 

12.  Upon  what  basis  are  the  rates  to  Anniston,  Ala.,  con- 
structed? 

223 


224  TEST  QUESTIONS 

13.  To  what  causes  may  deviations  from  the  authorized 
basis  of  rate-construction  be  attributed? 

14.  What  procedure  would  you  follow  if  you  desired  to 
construct  a  rate  from  New  York  City  to  Ozark,  Ala.? 

15.  What  are  the  class  rates  from  New  York  City  via  rail 
and  water  to  Columbus,  Miss.? 

16.  What  are  the  commodity  rates  on  iron  and  steel  rails 
from  New  York  City  to  Atlanta,  Ga.? 

17.  On  traffic  originating  at  New  York  City,  is  there  a 
definite  relationship  between  the  rates  to  Atlanta,  Ga.,  and 
those  to  Montgomery,  Ala.? 

18.  Are  the  rates  to  common  points  applied  to  local  points 
throughout  Southeastern  Territory? 

19.  Upon  what  basis  are  rates  constructed  to  local  stations 
in  Alabama  located  on  the  Atlantic  Coast  Line  Railroad? 

20.  Is  the  long-and-short-haul  clause  observed  as  to  rates 
on  the  route  from  New  York,  N.  Y.,  to  Memphis,  Tenn.? 

21.  To  what  causes  may  the  comparatively  low  rates  to 
Memphis,  Tenn.,  from  the  East  be  attributed? 

22.  Does  the  line  of  rates  from  New  York  City  to  stations 
on  the  route  selected  to  Montgomery,  Ala.,  appear  reasonable 
to  you? 

23.  To  stations  in  Montgomery  Sub-Territory  beyond 
Montgomery,  Ala.,  what  basis  is  employed  in  constructing 
through  rates  from  the  East? 

24.  Via  what  port  does  the  greatest  volume  of  traffic  to 
Southeastern  Territory  move  in  connection  with  the  water-and- 
rail  routes? 

25.  What  adjustment  is  employed  in  constructing  rates 
from  Boston,  Mass.,  and  Providence,  R.  I.? 

26.  How,  as  a  general  rule,  are  rates  from  interior  New 
England  points  constructed? 

27.  Is  it  necessary  to  place  manufacturers  of  like  kind  of 
commodities  or  articles  upon  a  common  footing?     Why? 

28.  Outhne  briefly  the  adjustment  employed  in  the  estab- 
lishment of  rail-and-water  rates  from  Philadelphia,  Pa. 

29.  How  are  the  rates  from  Baltimore,  Md.,  made  with 
regard  to  the  rates  from  Philadelphia,  Pa.? 


TEST  QUESTIONS  225 

30.  As  a  general  proposition,  how  are  the  rates  constructed 
from  Trunk  Line  Territory? 

31.  Give  the  rule  for  the  assimilation  of  the  Official  Classi- 
fication to  the  Southern  Classification. 

32.  Define  briefly  Buffalo-Pittsburgh  Territory. 

33.  What  basis  is  employed  in  establishing  the  rates  on 
lettered  class  traffic  from  Buffalo-Pittsburgh  Territory? 

34.  What  rates  are  observed  as  maxima  from  Ashland, 
Ky.,  on  traffic  destined  to  Jesup,  Ga.? 

35.  Name  the  Potomac  Gateways. 

36.  What  is  the  adjustment  from  Newport  News,  Va.,  to 
Birmingham,  Ala.? 

37.  Illustrate  in  general  the  method  of  constructing  rates 
from  New  York  City  to  Bennettsville,  S.  C. 

38.  Upon  what  general  basis  are  commodity  rates  con- 
structed? 

39.  What  is  the  commodity  rate  on  sugar  from  Boston, 
Mass.,  to  Montgomery,  Ala.? 

40.  On  a  commodity  such  as  sugar,  how  do  you  account 
for  the  comparatively  low  rates  from  adjoining  territories? 

41.  What  differentials  are  the  Gulf  routes  conceded? 

42.  Do  the  rates  from  the  western  base  points  reflect  the 
effect  of  the  rates  from  the  East?  If  so,  what  is  the  occasion 
therefor? 

43.  Do  the  lake-and-rail  rates  from  Chicago,  111.,  to  New 
York  City  have  any  effect  upon  the  rates  to  points  in  Southern 
Territory? 

44.  How  are  the  rates  to  Adele,  Ga.,  made?  To  West 
Point,  Ga.? 

45.  How  would  you  proceed  to  construct  the  rates  from 
Louisville,  Ky.,  to  Phoenix  City,  Ala.? 

46.  How  do  the  rates  to  Savannah,  Ga.,  from  Louisville, 
Ky.,  compare  with  the  rates  to  intermediate  points  in  the  route 
selected? 

47.  On  the  above  route,  at  what  point  is  the  long-and- 
short-haul  clause  first  violated? 

48.  What  is  the  basis  for  the  construction  of  rates  from 
Corinth,  Miss.? 


226  TEST  QUESTIONS 

49.  Are  the  rates  from  Ellisville  and  Newton,  Miss.,  made 
on  the  same  basis? 

50.  As  a  general  proposition,  how  are  the  rates  from  Central 
Freight  Association  Territory  constructed? 

51.  Define  a  proportional  rate. 

52.  Why  cannot  commodity  rates  in  one  direction  be 
contrasted  fairly  with  those  applying  in  an  opposite  direction? 

53.  How  was  the  rate  on  cotton  factory  products  from 
points  in  Southeastern  Territory  constructed? 

54.  What  does  Carolina  Territory  embrace? 

55.  What  is  the  rail-and-water  adjustment  employed  to 
Wilmington,  N.  C? 

56.  How  are  the  rates  from  Buffalo-Pittsburgh  Territory 
constructed? 

57.  Outline  in  general  the  Ohio  River  adjustment. 

58.  What  are  the  class  rates  from  Cincinnati,  Ohio,  to 
points  on  and  north  of  the  Walhalla-Wilmington  Line,  i.  e., 
making  on  Columbia,  S.  C? 

59.  Would  there  be  any  difference  in  these  rates  if  the 
shipment  were  destined  to  a  point  south  of  this  line? 

60.  To  Carolina  Territory  are  the  rates  from  Louisville, 
Ky.,  made  in  relation  to  the  rates  from  Cincinnati,  Ohio? 

6L  Upon  what  scale  are  the  rates  from  Memphis,  Tenn., 
to  Carolina  Territory  adjusted? 

62.  What  basis  is  employed  in  making  the  rates  from  New 
Orleans.,  La.,  to  Carolina  Territory? 

63.  What  is  the  difference  between  the  rates  from  Vicks- 
burg.  Miss.,  and  the  rates  from  New  Orleans,  La.,  to  Carolina 
Territory? 

64.  What  are  the  class  rates  from  Chattanooga.  Tenn.,  to 
destinations  in  Carolina  Territory? 


CHAPTER  XIV 

MISSISSIPPI  VAULEY  RATE  TERRITORY 

1.   CONSTEUCTION   OF  RaTES  TO  New   OrLEANS 

The  adjustment  to  be  considered  here  will  be  that 
used  in  establishing  rates  to  Mississippi  Valley  Terri- 
tory, which  is  outlined  on  Map  5  of  the  Atlas  of  Traffic 
Maps.  This  map,  as  well  as  the  description  thereon, 
should  be  referred  to  in  order  that  the  boundaries  of 
this  territory  and  the  points  embraced  therein  may  be 
definitely  fixed. 

For  the  purpose  of  this  work  it  seems  well  to  sub- 
divide the  points  located  in  this  territory  as  follows: 
(1)  Points  on  the  Mississippi  River  and  the  Gulf  of 
Mexico;  (2)  Mississippi  and  Tennessee  junction  points; 
and  (3)  local  points. 

2.   Development   of  Water   Competition 

The  part  that  water  competition  has  played  in  the 
development  of  the  rate  structures  in  the  South  is 
brought  out  very  strongly  by  the  Interstate  Commerce 
Commission  in  its  various  investigations.  While  it  is 
true  that  traffic  on  the  Mississippi  River  has  dwindled 
to  a  very  small  amount  and  that  the  water  competition 
from  this  source  may  be  considered  as  potential,  yet  a 
very  aggressive  competition  is  established  by  the  Mor- 
gan and  the  Mallory  lines,  serving  the  ports  of  New 
York,  New  Orleans,  and  Mobile.     The  southbound  ton- 

227 


228       FREIGHT  KATES :  SOUTHERN  TERRITORY 

nage  from  Seaboard  Territory  of  the  Morgan  Line 
for  the  first  eleven  months  of  the  calendar  year  for 
1911  aggregated  246,000  tons  and  during  the  same 
period  the  deliveries  of  the  Mobile  &  Ohio  Railroad  and 
Louisville  &  Nashville  Railroad  were  but  577  tons. 
From  this,  it  would  seem  that,  considering  the  competi- 
tion of  markets  and  the  volume  of  traffic  involved,  the 
rates  from  New  York  to  New  Orleans  and  Mobile  must 
be  considered  as  a  controlling  factor  in  this  adjustment. 
All  points  located  adjacent  to  the  seaboard  have  the 
advantage  of  location  over  such  markets  as  St.  Louis, 
Chicago,  Cincinnati,  and  other  points  located  on  inland 
waterways.  This  is  due  to  the  fact  that  the  cost  of 
operation  on  the  high  seas  is  considerably  less  than 
that  for  inland  river  navigation,  owing  to  the  greater 
size  of  the  vessels  and  the  consequently  larger  cargoes 
that  may  be  carried,  and  the  absence  of  currents  and 
of  shoal  water. 

3.  Eastebn  Cities  Adjustment 

(a)  All-Water  Rates  from  New  York,  N.  Y. 

The  uninsured  all-water  rates  from  New  York  City 
to  New  Orleans,  are  made  by  the  Morgan  Line  Steamers 
as  follows,  subject  to  the  Official  Classification: 

Classes 1        2        3        4        6        6 

Rates 70      60      50      40      35      30 

The  rates  are  also  applied  from  the  other  North 
Atlantic  cities,  namely,  Boston,  Philadelphia,  and  Balti- 
more. Via  the  Morgan  Line  there  is  also  a  system  of 
through  rates  from  interior  eastern  territory,  including 
the  Potomac  Gateways.  This  system  is  to  apply  the 
port,  proper,  rate  from  the  interior  point,  provided  the 


MISSISSIPPI  VALLEY  TERRITOEY  229 

charge  of  the  rail  or  the  boat  line  up  to  the  port  added 
to  the  transfer  cost  to  shipside  does  not  exceed  the 
maximum  figure  which  the  steamship  line  is  willing  to 
absorb.  Any  excess  over  the  maximum  absorption  is 
added  to  the  through  rate. 

(b)  Rail-and-Water  Rates  from  New  York,  N.  ¥. 

The  insured  water-and-rail  rates  to  New  Orleans  from 
the  eastern  seaboard  cities  and  points  taking  the  same 
rates,  via  the  Atlantic  Ports  south  of  Baltimore,  are 
made  the  following  differentials  greater  than  the  corre- 
sponding all- water  rates : 

Classes 12        3        4        5        6 

Differentials 25      20       15       10       8        6 

From  interior  eastern  points  the  rates  via  the  South 
Atlantic  Ports  are  made  the  same  as  the  rates  from 
Boston,  New  York,  Philadelphia,  or  Baltimore,  as  the 
case  may  be,  depending  somewhat  upon  the  amounts  of 
the  charges  to  shipside  which  are  required  to  be 
absorbed  by  the  vessel  lines  south  of  the  ports  of  trans- 
shipment. Here  the  situation  is  as  described  concerning 
the  corresponding  rates  via  the  Morgan  Line. 

(c)  All-Rail  Rates  from  New  York,  N.  Y. 

The  all-rail  rates  from  New  York  are  as  follows,  sub- 
ject to  the  Official  Classification : 

Classes 1         2        3        4        5        6 

Rates 118      98      78      61       50      44 

While  not  made  on  a  definite  relationship  to  the  all- 
water  rates,  they  are  substantially,  inasmuch  as  the 
latter,  as  at  present  fixed  upon,  were  made  with  the 


230       FREIGHT  RATES:  SOUTHERN  TERRITORY 

all-rail  competition  definitely  established.  It  is  of 
interest,  in  passing,  to  observe  that  from  the  North 
Atlantic  cities  and  contiguous  shipping  points  the 
greater  volume  of  the  traffic  to  New  Orleans  is  controlled 
by  the  all-water  route,  only  the  heavy  or  bulky  freight 
moving  via  the  all-rail  routes. 

(d)  From  Boston,  Mass.,  Philadelphia,  Pa.,  and  Balti- 
more, Md. 

The  rates  from  Boston,  Baltimore,  and  Philadelphia, 
as  well  as  from  interior  eastern  territory,  are  made 
with  relation  to  the  rates  from  New  York  under  the 
Trimk  Line  adjustment. 

(e)  From  Virginia  Cities 

The  all-rail  rates  from  the  Virginia  Cities  are  the 
same  as  the  water-and-rail  rates  from  Baltimore. 

To  Mobile,  Ala.,  the  uninsured  all-water  rates  from 
New  York  are  the  following  differentials  higher  than 
the  corresponding  rates  to  New  Orleans: 

Classes 1        2        3        4        5        6 

Differentials 5        5        4        4        3        3 

Consequently,  these  differences  are  carried  out  in  the 
water-and-rail  and  the  all-rail  rates. 

(/)  From  Eastern  Points  to  Mississippi  River  Points 

The  rates  from  eastern  territory  to  Helena,  Ark., 
Greenville,  Gulfport,  Natchez,  and  Vicksburg,  Miss., 
are  in  line  with  the  following  rates  from  New  York: 

Classes 1     2    3456ABCDEHF 

AU-rail  rates 118  98  78  61  50  44  44  44  44  44  50  61  88 

Water-and-rail  rates.  .104  95  78  61  50  44  40  49  41  40  59  60  80 


MISSISSIPPI  VALLEY  TERRITOEY  231 

It  will  be  observed  that  the  all-rail  rates  are  the  same 
as  those  to  New  Orleans,  assimilated,  however,  to  the 
Southern  Classification.  The  all-rail  and  the  water- 
and-rail  rates  to  Baton  Rouge  and  Bayou  Sara,  La., 
are  the  same  as  the  all-rail  rates  to  Vicksburg. 

The  Morgan  Line  carries  via  New  Orleans  uninsured 
rates  which  are  a  maximum  of  the  following  differ- 
entials less  than  the  rates  via  the  South  Atlantic  Ports 
to  Baton  Eouge  and  Bayou  Sara,  La.,  and  Natchez  and 
Vicksburg,  Miss.: 

Classes 123456ABCDEHF 

Differentials 18  14  11    8644444688 

{g)  From  Tennessee  Junction  Points 

Bates  from  junction  points  in  west  Tennessee  and 
interior  Mississippi  Valley  Territory  to  the  lower  Mis- 
sissippi River  points  and  Mobile  are  generally  made 
the  same  as  in  the  reverse  direction;  from  local  points 
in  the  same  territories  the  rates  are  made  on  the 
respective  local  bases  of  the  several  direct  lines,  but  not 
exceeding  the  lowest  combination.  From  local  points 
in  central  and  east  Tennessee,  in  Kentucky,  and  in 
Southeastern  Territory,  the  normal  basis  is  the  lowest 
combination,  except  where  the  local  scale  of  any  direct 
line  makes  less.  However,  in  the  case  of  some  of  the 
manufactured  commodities  and  the  like,  there  are  rates 
from  these  local  points  which  are  the  same  or  slightly 
higher  than  the  rates  from  some  near  common  or 
junction  point. 

(h)  From  Carolina  Territory 

From  Carolina  Territory  there  are  numerous  rates 
which  do  not  exceed  the  corresponding  rates  from  the 


232       FREIGHT  RATES :  SOUTHERN  TERRITORY 

Virginia    Cities;    otherwise,    the    lowest    combination 
applies. 

4.  Class  Bates 

The  rates  from  St.  Louis  and  Louisville  which  have 
been  fixed  by  river  competition  are  used  as  the  basis  for 
determining  the  rates  from  points  in  Central  Freight 
Association  and  Western  Trunk  Line  territories  to  these 
points,  and  are  as  follows: 

Classes 12a456ABCDEHF 

Rates 90  75  65  50  40  35  25  38  25  20  28  57  45 

As  a  general  proposition,  the  rates  from  St.  Louis  to 
New  Orleans  and  points  taking  the  same  rates  were 
fixed,  primarily,  to  meet  water  competition.  To  the 
rates  of  the  Anchor  Line  of  steamboats  and  barges  (a 
concern  in  operation  on  the  Mississippi  River  for  many 
years,  but  now  defunct),  certain  insurance  differentials 
were  added,  the  resultant  figures  being  adopted  as  the 
corresponding  all-rail  rates.  There  have  been  varia- 
tions from  this  basic  principle,  in  that  the  all-water 
rates  from  New  York  and  other  eastern  cities  to  New 
Orleans  are  reflected  in  the  adjustment  from  St.  Louis, 
Chicago,  and  other  western  points  to  New  Orleans  and 
Mobile.  It  has  been  the  policy  of  one  of  the  principal 
lines  serving  New  Orleans  to  make  the  same  rates,  or 
only  slightly  higher  ones,  from  Chicago  on  some  of  the 
highly  competitive  commodities  manufactured  or  pro- 
duced both  in  the  West  and  in  the  East  as  from  New 
York.  This  ocean  competition  has  necessarily  caused 
the  rates  to  Baton  Rouge,  Vicksburg,  and  other  points 
customarily  taking  New  Orleans  rates  to  be  reduced. 
Rates  corresponding  with  those  thus  made  from  Chicago 


MISSISSIPPI  VALLEY  TERRITORY  233 

were  fixed  from  St.  Louis  on  the  customary  differen- 
tial basis. 

Again,  a  few  of  the  commodity  adjustments  from 
the  Central  West  have  been  due  to  other  than 
water-competitive  conditions.  The  southern  lines  are 
not  in  control  of  the  traffic  between  the  upper  Missis- 
sippi River  points  and  other  border  points  on  the  one 
hand  and  the  lower  Mississippi  River  points  on  the 
other  hand,  as  the  western  lines  (that  is,  those  operating 
through  Missouri,  Arkansas,  and  Louisiana)  actively 
compete  between  St.  Louis,  Chicago,  St.  Paul,  Dubuque, 
etc.,  on  the  one  hand  and  Memphis,  Vicksburg,  New 
Orleans,  etc.,  on  the  other  hand.  On  numerous  occa- 
sions these  lines  have  fixed  commodity  rates  which  are 
reflected  in  the  rates  of  the  southern  lines  from  St. 
Louis  and  points  east  thereof. 

Points  of  origin  in  the  state  of  Illinois  and  in  Cen- 
tral Freight  Association  Territory,  etc.,  are  grouped 
into  sub-territories  or  sections;  each  of  these  groups  is 
given  the  name  of  a  prominent  point  within  it  and 
includes  all  points  of  origin,  whether  competitive  or 
non-competitive.  The  joint  working  arrangements  be- 
tween the  southern  and  the  northern  lines  interested 
provide  that  the  rates  made  on  the  differential  relation- 
ship described  in  Table  53  shall  be  the  minimum  rates, 
it  being  left  with  the  initial  lines  to  determine  whether 
they  wish  to  make  rates  quite  so  low  as  the  basis  may 
permit.  From  points  in  Central  Freight  Association 
Territory  particularly,  the  initial  lines  have  not  found 
it  necessary  to  establish  such  an  extensive  list  of  com- 
modity rates  as  that  applied  from  St.  Louis  and  the 
Ohio  River. 


CHAPTER  XV 


MISSISSIPPI  VALLEY  RATE  TERRITORY— Continued 

1.  Application  of  Class  Rates 
(a)  From  Ohio  River  Points  and  Related  Territory 

In  Table  53  are  given  the  differentials  (over  and 
under  the  St.  Louis-Louisville-New  Orleans  rates)  which 
are  applicable  from  groups  located  on  or  adjacent  to 
the  Ohio  River  and  from  groups  in  Western  Trunk 
Line  Territory  and  which  are  used  in  the  construction 
of  rates. 

TABLE  53 

Differentials  Applicable  from  Groups  Located  on  ob 
Related  to  the  Ohio  River 


From  Geoups 

Differentials  Over  or  Under  the  St. 
Louis-New  Orleans  or  Louisville- 
New  Orleans  Rates  Except^ 
AS  Noted   t 

Differentials    in    Cents   per    100    Pounds 
Except  as  Noted 

Classes^ 
1     2    3    4    5    6ABCDEHP 

Cairo  (under) 

15  12  10    8    7    6    4     6  5      5    5  10  10 

Nashville  (under) 

15  12  10    8    7     6    4    6  5      6    5  10  10 

Evansviile  (under) 

33322222  2i    2235 
888444332      2344 
888444322      2344 
888444342      2344 

Cincinnati  (over)' 

Indianapolis  (over) 

Springfield  (over) 

Peoria  (over) 

14  11     9655443      3466 

Chicago  (over) 

Milwaukee  (over) 

20  15  10    8    7     6    6    6  6      6    5    8  12 
26  20  14  11     9    8    8    8  8      8    7  11  16 

Kentucky* 

12  10    8643333      3466 

'Governed  by  the  Southern  Classification. 
'Per  barrel. 

'Not  greater  per  mile  than  from  Louisville. 
K)ver  Indianapolis  group. 

234 


MISSISSIPPI  VALLEY  TEBRITOBY  235 

Taking  the  St.  Louis  rates  as  the  basis  and  adding  to 
or  deducting  from  them  the  differentials  shown  in 
Table  53,  through  rates  are  produced. 

Table  54  sets  forth  the  current  class  rates  from  some 
of  the  various  groups  not  only  to  New  Orleans,  La.,  but 
to  Memphis,  Tenn.,  as  well.  The  Memphis  adjustment, 
however,  while  hinged  upon  the  adjustment  to  New  Or- 
leans will  be  taken  up  later. 

As  an  illustration,  assume  that  you  wish  to  ascertain 
the  rates  from  the  Evansville  group  to  New  Orleans. 
The  following  shows  how  these  rates  are   constructed 

Classes ...    123456ABC     DEHF 

From    St.     Louis    to 

New  Orleans 90  75  65  50  40  35  25  38  25  20  28  57  45 

EvansviUe  differentials    33322222    2^    2235 

Through  rates 87  72  62  48  38  33  23  36  22i  18  26  54  40 

In  the  application  of  the  differentials  above  stated. 
Central  Freight  Association  Territory  and  part  of 
Western  Trunk  Line  Territory  are  divided  into  groups 
corresponding  to  those  shown  in  Table  53.  The  follow- 
ing description  of  these  groups  will  be  found  to  be  of 
much  assistance  in  computing  the  rates  from  the 
territories. 

Group  1. — St.  Louis  and  Louisville  rates  apply  from 
East  St.  Louis  and  Alton,  111.,  and  from  points  between 
Alton  and  East  St.  Louis  on  direct  lines;  Carondelet, 
Mo.,  Belleville  and  Venice,  111.,  Jeffersonville  and  New 
Albany,  Ind.,  and  from  the  territory  in  the  state  of 
Illinois  on  and  south  of  the  line  from  East  St.  Louis, 
through  Odin,  Flora,  and  Olnsy,  111.,  to  the  Indiana 
state  line  and  such  other  points  as  may  be  otherwise 
provided  for. 

Group  2. — Cairo,  111.,  rates  apply  from  Belmont,  Mo., 
Mound  City,  111.,  Paducah,  Columbus,  and  Hickman,  Ky., 
and  such  other  points  as  may  be  otherwise  provided  for. 


236        FREIGHT  RATES :  SOUTHERN  TERRITORY 


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MISSISSIPPI  VALLEY  TERRITORY  237 

Group  5,=-Nashville,  Tenn.,  rates  apply  from  such 
other  points  as  may  be  otherwise  provided  for. 

Group  4.— Evansville,  Ind.,  rates  apply  from  Hender- 
son, Ky.,  Owensboro,  Ky.,  and  such  otlier  points  as  may 
be  otherwise  provided  for. 

Group  5. — Cincinnati  rates  apply  from  Arlington 
Heights,  Ohio,  Aurora,  Ind.,  Carthage,  Ohio,  Covington, 
Ky.,  Delhi,  East  Norwood,  Edgemont,  Elmwood  Place, 
Hartwell,  Ivorydale,  and  Ivorydale  Junction,  Ohio, 
Lawrenceburg,  Ind.,  Lockland  and  Longview,  Ohio,  Lex- 
ington, Ky.,  Maplewood  (Hamilton  Co.),  North  Bend, 
and  Steelton,  Ohio,  Newport,  Ky.,  and  such  other  points 
as  may  be  otherwise  provided  for. 

Group  6. — Indianapolis  rates  apply  from  Maysville, 
Ky.,  and  from  such  other  points  as  may  be  otherwise 
provided  for.  Indianapolis  rates  also  apply  from  Ash- 
land, Ky.,  and  Ironton  and  Portsmouth,  Ohio,  except 
that  on  iron  articles,  including  nails,  but  not  including 
iron  and  steel  rails,  the  rates  are  the  same  as  from 
Cincinnati,  Ohio. 

Group  7. — Springfield  rates  apply  from  points  in  the 
following  territory:  Commencing  at  Springfield,  111., 
thence  on  and  south  of  the  line  of  the  Illinois  Central 
Railroad,  through  Clinton,  111.,  to  and  including  Deca- 
tur, 111. ;  thence  on  and  south  of  the  line  of  the  Chicago, 
Indiana  &  Western  Railway,  through  Tuscola  and 
Chrisman,  111.,  to  the  Indiana-Illinois  State  Line;  thence 
west  of  the  Indiana-Illinois  State  Line  to  the  line  of  the 
Baltimore  &  Ohio  Southwestern  Railroad;  thence  north 
of  the  line  of  the  Baltimore  &  Ohio  Southwestern  Rail- 
road, via  Olney,  Flora,  and  Odin,  111.,  to  but  not  includ- 
ing East  St.  Louis,  111.;  thence  on  and  east  of  the  line 
of  the  St.  Louis,  Keokuk  &  Northwestern  Railroad  to 
and  including  Hannibal,  Mo. ;  and  thence  on  and  south  of 


238       FREIGHT  KATES :  SOUTHERN  TERRITORY 

the  line  of  the  Wabash  Railroad,  through  Chapin,  to 
Springfield,  111.,  inclusive. 

Group  5.— Peoria  rates  apply  from  points  in  the  fol- 
lowing territory:  Commencing  at  Peoria,  111.,  thence  on 
and  south  of  the  line  of  the  Chicago,  Burlington  & 
Quincy  Railroad  to  and  including  Burlington,  Iowa; 
thence  south  of  the  line  of  the  St.  Louis,  Keokuk  &  North- 
western Railroad  to  but  not  including  Hannibal,  Mo. ; 
thence  north  of  the  line  of  the  Wabash  Railroad  to 
Springfield,  111.;  thence  north  of  the  line  of  the  Illinois 
Central  Railroad,  via  Clinton,  to  but  not  including 
Decatur,  111.;  thence  north  of  the  line  of  the  Chicago, 
Indiana  &  Western  Railway  to  the  Indiana-Illinois 
State  Line;  thence  west  of  the  Indiana-Illinois  State 
Line  to  the  line  of  the  Toledo,  Peoria  &  Western 
Railway;  and  thence  on  and  south  of  the  line  of  the 
Toledo,  Peoria  &  Western  Railway  to  Peoria,  111., 
inclusive. 

Group  9. — Chicago  rates  apply  from  points  in  the 
following  territory:  Commencing  at  Chicago,  thence  via 
the  west  bank  of  Lake  Michigan  to  the  Indiana-Illinois 
State  Line;  thence  west  of  the  Indiana-Illinois  State 
Line  to  the  line  of  the  Toledo,  Peoria  &  Western  Rail- 
way; thence  north  of  the  line  of  the  Toledo,  Peoria  & 
Western  Railway  to  but  not  including  Peoria,  111.; 
thence  north  of  the  line  of  the  Chicago,  Burlington  & 
Quincy  Railroad  to  a  point  just  north  of  Burlington, 
Iowa ;  thence  via  the  west  bank  of  the  Mississippi  River, 
through  Clinton,  Lyons,  and  Sabula,  Iowa,  to  and  includ- 
ing Savanna,  111. ;  thence  on  and  south  of  the  line  of  the 
Chicago,  Milwaukee  &  St.  Paul  Railway  to  and  includ- 
ing Freeport,  111.;  thence  on  and  south  of  the  line  of 
the  Chicago  &  North  Western  Railway,  through  Rock- 
ford  and  Belvidere,  111.,  to  Elgin,  III,  including  Dundee, 
Elgin,  Carpentersville,  and  Algonquin,  111.;  and  thence 


MISSISSIPPI  VALLEY  TERRITOEY  239 

on  and  south  of  the  Chicago,  Milwaukee  &  St.  Paul  Rail- 
way to  Chicago,  inclusive. 

Group  10. — Milwaukee  rates  apply  from  points  in  the 
following  territory:  Commencing  at  Milwaukee,  Wis., 
thence  on  and  south  of  the  line  of  the  Chicago,  Milwau- 
kee &  St.  Paul  Railway,  through  Brookfield  Junction, 
Wis.,  to  and  including  Waukesha,  Wis.;  thence  on  and 
east  of  the  line  of  the  Wisconsin  Central  Railway  to 
and  including  Leighton,  111.;  thence  on  and  east  of  the 
hue  of  the  Elgin,  Joliet  &  Eastern  Railway  to  but  not 
including  Spaulding,  111. ;  thence  north  of  the  line  of  the 
Chicago,  Milwaukee  &  St.  Paul  Railway  to  Chicago; 
and  thence  via  the  west  bank  of  Lake  Michigan  to 
Milwaukee,  inclusive ;  also  from  points  on  the  line  of  the 
Illinois  Central  Railroad  from  Dubuque  to  but  not 
including  Freeport,  111.,  and  north  of  Freeport  to 
Dodgeville  and  Madison,  Wis.,  inclusive. 

(b)  Grouping  of  Central  Freight  Association  Territory 

Rates  from  other  points  in  Central  Freight  Associa- 
tion Territory  are  made  with  relation  to  the  rates 
established  under  the  basis  set  forth  in  the  preceding 
pages.  In  the  following  description  of  the  groups  is 
given  the  basis  for  the  construction  of  the  rates. 

Group  A:  Indianapolis  Territory. — Indianapolis  ter- 
ritory is  described  as  follows :  From  points  on  and 
south  of  the  Cincinnati,  Hamilton  &  Dayton  Railway, 
beginning  at  a  point  on  the  Illinois-Indiana  State  Line, 
to  and  including  Indianapolis,  Ind. ;  thence  east  via  the 
Pittsburgh,  Cincinnati,  Chicago  &  St.  Louis  Railway, 
through  New  Paris,  Ohio,  to  Dayton,  Ohio;  thence  via 
the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Rail- 
way to  Springfield;  thence  via  the  Detroit,  Toledo  & 
Ironton  Railway  to  Washington  Court  House;  thence 


240        FEBIGHT  KATES :  SOUTHERN  TERRITORY 

via  the  Cincinnati,  Hamilton  &  Dayton  Railway  to 
Mussellman's;  thence  via  the  Cincinnati,  Hamilton  & 
Dayton  Railway  to  and  including  Ironton  and  Ports- 
mouth, Ohio,  Ashland,  Ky.,  (with  exception  named  be- 
low) and  Wellston,  Ohio;  thence  via  the  north  bank  of 
the  Ohio  River  (not  including  Cincinnati  and  Jefferson- 
ville)  to  a  point  just  north  of  New  Albany;  thence  on 
the  line  of  the  Chicago,  Indianapohs  &  Louisville  Rail- 
way to  its  junction  with  the  Baltimore  &  Ohio  South- 
western Railroad  at  Mitchell,  Ind. ;  thence  via  the 
Baltimore  &  Ohio  Southwestern  Railroad  to  but  not 
including  Vincennes;  and  thence  north  via  the  Indiana- 
Illinois  State  Line  to  the  point  of  beginning. 

Exceptions. — From  Arlington  Heights,  Ohio,  Aurora, 
Ind.,  Carthage,  Cincinnati,  Delhi,  East  Norwood,  Edge- 
mont,  Elmwood  Place,  Hartwell,  Ivorydale,  and  Ivory- 
dale  Junction,  Ohio,  Jeffersonville  and  Lawrenceburg, 
Ind.,  Lockland,  Longview,  Maplewood  (Hamilton  Co.), 
North  Bend,  and  Steelton,  Ohio,  the  Cincinnati,  Ohio, 
rates  apply,  except  from  Jeffersomdlle,  Ind.,  from  which 
St.  Louis-Louisville  rates  apply. 

The  rates  from  the  Indianapolis  group  apply  from 
the  following  points : 

Chesapeake  &  Ohio  Railway: 
Stations  between  Kenova,  W.  Va.,  and  Fort  Thomas, 
Ky.  (except  Ashland,   Ky.,   and  Ironton   and 
Portsmouth,  Ohio,   on  iron  articles,  including 
nails,  but  not  including  iron  or  steel  rails). 

Through  rates  from  Group  A  are  the  same  as  from 
Indianapolis,  Ind. 

Group  B:  Fort  Wayne-Columhus  Territory. — Fort 
Wayne-Columbus  territory  is  described  as  follows: 
From  points  north  of  the  boundary  line  of  Group  A, 
east  of  the  Illinois-Indiana  State  Line,  south  of  Lake 
Michigan  and  the  Michigan  state  line,  to  its  intersection 


MISSISSIPPI  VALLEY  TEBRITORY  241 

with  the  Indiana-Ohio  state  line  (but  not  including 
points  on  and  south  of  the  Michigan  Central  Railroad 
from  New  Buffalo  to  South  Bend  via  Niles) ;  thence  via 
that  line  to  where  it  is  crossed  by  the  Baltimore  & 
Ohio  Railroad ;  thence  south  of  the  line  of  the  Baltimore 
&  Ohio  Railroad  and  east  through  Defiance  and  Deshler ; 
thence  south  of  the  line  of  the  Cincinnati,  Hamilton  & 
Dayton  Railway  to  Findlay;  thence  south  of  the  line 
of  the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Rail- 
way to  Carey;  thence  south  of  the  Northern  Ohio 
Railway  to  Sycamore;  thence  south  of  the  line  of  the 
Toledo  &  Ohio  Central  Railway  to  Bucyrus;  thence 
south  of  the  line  of  the  Pittsburgh,  Fort  Wayne  & 
Chicago  Railway  to  Mansfield;  thence  west  of  the  line 
of  the  Baltimore  &  Ohio  Railroad,  through  Mt.  Vernon, 
Newark,  Junction  City,  and  Glouster;  thence  west  of 
the  Kanawha  &  Michigan  Railway  to  and  including 
Athens;  and  thence  via  an  imaginary  line  to  a  point  on 
the  north  bank  of  the  Ohio  River  just  east  of  Pomeroy, 
following  the  north  bank  of  the  Ohio  River  to  the  point 
of  intersection  mth  Group  1. 

Through  rates  from  Group  B  are  the  same  as  from 
Chicago,  111. 

Group  C:  Vincennes  Territory. — Except  as  herein- 
after named,  Vincennes  territory  is  described  as  follows : 
Beginning  at  Vincennes,  Ind.,  thence  south  of  the  line 
of  the  Baltimore  &  Ohio  Southwestern  Railroad  to  but 
not  including  Mitchell,  Ind.;  thence  south  of  the  Chi- 
cago, Indianapolis  &  Louisville  Railway  to  New  Albany, 
Ind.;  thence  west  of  and  including  the  main  line  of  the 
Southern  Railway  to  the  Indiana-Illinois  State  Line 
(including  points  on  the  branches  of  the  Southern  Rail- 
way from  Jasper  to  but  not  including  Evansville,  Ind., 
Lincoln    City   to    Rockport,   Ind.,   inclusive,    and    from 


242        FREIGHT  BATES:  SOUTHERN  TERRITORY 

Lincoln  City  to  Cannelton,  inclusive) ;  and  thence  via 
that  line  to  the  point  of  beginning. 

This  description  does  not  include  stations  in  Indiana 
on  and  south  of  the  line  of  the  Southern  Railway  from 
Mt.  Carmel  to  Louisville,  through  New  Albany,  Ind., 
and  points  located  on  the  Evansville  &  Terre  Haute 
Railroad  at  and  south  of  its  intersection  with  the  St. 
Louis  Division  of  the  Southern  Railway.  The  Southern 
Railway  has  also  announced  its  purpose  to  establish 
from  Oakland  City  and  Princeton,  Ind.,  to  Memphis, 
New  Orleans,  and  group,  etc.,  the  St.  Louis  basis  of 
rates,  including  all  commodities,  except  that  from 
Princeton,  Ind.,  to  the  same  points  on  articles  and  on 
Classes  C,  D,  and  F,  it  will  continue  the  use  of  the 
Evansville  rates.  From  all  local  points  on  the  St. 
Louis  Division  of  the  Southern  Railway  east  of  Mt. 
Carmel,  the  Southern  Railway  will  employ  the  St.  Louis 
basis  of  rates.  The  Evansville  &  Terre  Haute  Railroad 
has  announced  that  it  will  hold  from  its  junction  with 
the  Southern  Railway  the  same  rates  as  those  published 
by  the  Southern  Railway,  and  from  stations  south 
thereof  the  present  basis  of  rates  will  obtain. 

Through  rates  from  Group  C  are  the  same  as  from 
the  St.  Louis-Louisville  group. 

Group  D:  Evansville  Territory. — Evansville  terri- 
tory is  described  as  follows:  East  of  the  Illinois- 
Indiana  State  Line,  south  and  west  of  the  boundaries 
of  Group  C  and  on  the  north  bank  of  the  Ohio  River, 
except  as  provided  for  in  Group  C. 

Through  rates  from  Group  D  are  the  same  as  from 
Evansville,  Ind. 

Group  E:  Detroit-Toledo  Territory. — ^Detroit-Toledo 
territory  is  described  as  follows :  North  of  the  northern 
boundary  line  of  Group  B,  east  of  Lake  Michigan  and 
following  the  eastern  boundary  of  the  lake  to  and  includ- 


MISSISSIPPI  VALLEY  TERRITORY  243 

ing  Montague ;  thence  beginning  at  Muskegon,  following 
the  line  of  the  Toledo,  Saginaw  &  Muskegon  Railway 
to  Sheridan;  thence  north  and  east  along  the  line  of 
the  Detroit,  Grand  Rapids  &  Western  Railroad  via 
Edmore  to  Saginaw;  thence  north  to  and  including  Bay 
City  and  West  Bay  City;  thence  via  the  Michigan  Cen- 
tral Railroad  to  Vassar  (including  Caro) ;  thence  via 
the  Flint  &  Pere  Marquette  Railway  to  Port  Huron; 
thence  via  the  eastern  boundary  of  Michigan  to  its 
intersection  with  the  northern  boundary  of  Ohio ;  thence 
south  of  Lake  Erie  to  but  not  including  Sandusky; 
thence  west  of  a  line  drawn  from  Sandusky  west  of  the 
Baltimore  &  Ohio  Railroad,  through  Chicago  Junction, 
to  Mansfield. 

Through  rates  from  Group  E  are  the  same  as  from 
Milwaukee,  Wis. 

Group  F:  Buffalo-Pittsburgh  Territory. — Buffalo- 
Pittsburgh  territory  is  described  as  follows:  Beginning 
at  Sarnia,  Ont.,  thence  via  Kings  Court  Junction  to 
London,  Ont.;  thence  via  the  main  line  of  the  Grand 
Trunk  Railway  System  to  Suspension  Bridge,  Can.; 
thence  via  Suspension  Bridge,  N.  Y.,  LaSalle,  Tona- 
wanda,  Black  Rock,  International  Junction,  and  East 
Buffalo  to  Buffalo,  N.  Y. ;  thence  south  of  the  line  of 
the  Buffalo,  Rochester  &  Pittsburgh  Railway  from  Buf- 
falo to  Bradford  (not  including  Bradford) ;  thence  south 
of  the  Buffalo  &  Allegheny  Division  of  the  Pennsylvania 
Railroad  from  Bradford  to  Morrison  (not  including 
Bradford  or  Morrison) ;  thence  on  and  south  of  the 
Buffalo  &  Allegheny  Division  of  the  Pennsylvania  Rail- 
road to  Pittsburgh;  thence  via  the  Baltimore  &  Ohio 
Railroad  to  Wheeling,  W.  Va. ;  thence  via  both  banks 
of  the  Ohio  River  to  the  intersection  with  the  boundary 
of  Group  B;  thence  east  of  the  boundary  line  of  Group 
B  to  and  including  Mansfield,  Ohio;  and  thence  east  of 


244       PEEIGHT  KATES :  SOUTHERN  TEERITOEY 

the  eastern  boundary  of  Group  E  to  Sandusky,  Ohio, 
including  Sandusky. 

The  rates  from  the  Buffalo-Pittsburgh  group  apply 
from  the  following  points : 
Baltimore  &  Ohio  Railroad: 

Stations  on  Pittsburgh  Division  east  of  Glenwood 
to  Jacob's  Creek,  latter  inclusive. 
Chesapeake  &  Ohio  Railway: 
Stations  between  Kanawha,  W.  Va.,  and  Ceredo, 
W.  Va.,  inclusive. 
Pennsylvania  Railroad : 
Stations  on  Buffalo  &  Allegheny  Valley  Division, 

Buffalo  to  and  including  Ebenezer,  Pa. 
Stations  on  main  line,  Homewood  to  Latrobe,  Po.., 

inclusive. 
Stations  on  West  Pennsylvania  Division  north  of 
Allegheny  Valley  Railway  Junction  to  Edri,  Pa. 
latter  inclusive. 
Stations  on  Southwest  Pennsylvania  Railway,  East 
Greensburg  to  New  Stanton,  Pa.,  both  inclusive. 
Stations  on  Radebaugh  Branch. 
Stations  on  Turtle  Creek  Valley  Railroad. 
Stations  on  Monongahela  Division  east  of  Ormsby 

to  Belle  Vernon,  Pa.,  latter  inclusive. 
Stations  on  McKeesport  &  Bessemer  Railroad. 
Pittsburgh  &  Lake  Erie  Railroad: 

Stations  on  Youghiogheny  Division,  Beck's  Run  to 

Whitsett  Junction,  Pa.,  both  inclusive. 
Stations  on  Monongahela  Division,  Reynoldton  to 
Belle  Vernon,  Pa.,  both  inclusive. 
Ohio  Central  Lines: 
Stations  Point  Pleasant  to  Charleston,  W.  Va.,  in- 
clusive. 
Through  rates  from  Group  F  are  the  same  as  from 
Milwaukee,  Wis. 


MISSISSIPPI  VALLEY  TERRITORY 


245 


Table  55  gives  the  differentials  to  be  used  in  con- 
nection with  the  rates  set  forth  in  the  preceding  pages 
in  establishing  rates  from  certain  other  groups  in  North- 
ern Michigan  in  Central  Freight  Association  Territory. 

TABLE  55 
Differentials  from  Northern  Michigan 


Differentials    Over    the    Detroit-Toledo 
Groups  Except  as  Noted 

From  Groups 

Differentials  in  Cents  per  100  Pounds   Except 
as  Noted 

Classes' 
1      2      3      4      56ABCDEHF» 

Howard  Citv 

5      4      3|     2i  li  1     1     1     1     1     1     1       2 

Owendale 

Clare 

Cadillac 

Traverse  City 

Cheboygan 

Manistiqup' 

6      5      4      322222222      4 

9      8      7      5    4    2^  2^  2§  2i  2^  2J  2J     5 

11       9      7      543333333      6 

m  15     lU     8    6    5    5    5    5    5    5    5     10 

20     17     14     10    8    6    6    6    6    6    6    6     12 

3      2i     2       U  1     1     1     1     1     1     1     1       2 

'Governed  by  the  Southern  Classification. 
'Per  barrel. 

'Over  Ft.  Wayne-Columbus  group;  applicable  only  on  traflBc  destined 
beyond. 


CHAPTER  XVI 

MISSISSIPPI  VALLEY  RATE  TERRITORY— Contlnned 

i.    Adjustment  from   Points  in   Southern   Territory 

TO  New  Orleans,  La. 

From  Chattanooga,  Tenn. — The  rates  are  not  less 
than  the  rates  from  Nashville,  Tenn. 

From  Atlanta,  Ga. — Specific  rates  on  the  classes  are 
made,  which  are  not  less  in  any  case  than  the  rates  from 
Chattanooga.  The  commodity  rates  are  the  same  as 
those  from  Chattanooga. 

From  Augusta,  Ga. — The  rates  are  made  the  follow- 
ing differentials  over  the  rates  from  Atlanta: 

Classes 123456ABCDEHF 

Differentials 3    3     3    2     2    2    2    2    2    2    2    2    4 

From  Macon,  Ga. — The  rates  are  made  the  same  as 
those  from  Atlanta. 

From  Savannah,  Ga.,  and  points  taking  the  same 
rates. — The  rates  are  made  the  following  differentials 
less  than  the  rates  from  the  Virginia  Cities: 

Classes 1     2    3    4    6    dABCDEHF 

Differentials 8765442332454 

The  commodity  rates  are  made  2  cents  less  than  the 
rates  from  the  Virginia  Cities. 

From  Birmingham,  Ala. — The  rates  are  made  the 
following  differentials  less  than  the  rates  from  Chat- 
tanooga : 

Classes 123456ABCDEHr 

Differentials 6    5    4    4     3     3     2    2    2    2    2    2     4 

246 


MISSISSIPPI  VALLEY  TERRITORY  247 

The  commodity  rates  are  made  2  cents  less  than  the 
rates  from  Chattanooga. 

From  Montgomery  and  Selma,  Ala. — The  rates  are 
made  the  same  as  those  from  Birmingham,  except  that 
to  Mobile  the  rates  are  made  to  meet  the  competition 
on  the  Alabama  River. 

From  Decatur,  Florence,  Sheffield,  and  Huntsville, 
Ala. — The  rates  are  made  the  same  as  those  from 
Nashville. 

Other  common  points  in  the  southeast  are  given  rates 
in  relation  to  those  at  Atlanta,  Macon,  Chattanooga, 
etc.,  as  above  described. 

From  non-competitive  points  in  the  southeast,  the 
rates  are  generally  made  on  the  lowest  combination,  but 
not  in  excess  of  the  mileage  scales  of  a  continuous  line 
between  the  point  of  origin  and  destination.  Again, 
there  are  exceptions  in  the  rates  on  commodities  manu- 
factured or  produced  at  local  ponts  in  competition  with 
those  having  more  favorable  transportation  facilities, 
which  are  given  competitive  rates,  usually  the  same  as 
the  corresponding  ones  from  some  adjacent  common 
point. 

2.  Commodity  Rates 

{a)  From  Ohio  River  Points  and  Related  Territory 

While  the  commodity  rates  from  the  St.  Louis-Louis- 
ville group  to  New  Orleans  were  established  on  the  same 
basis  as  the  class  rates,  that  is,  with  relation  to  w^ater 
competition,  the  commodity  rates  from  other  points 
have  been  worked  out  on  a  different  basis. 

The  scale  for  computing  commodity  rates,  shown  in 
Table  56,  together  with  explanatory  notes,  will  explain 
the  method  of  arriving  at  commodity  rates.    The  num- 


248        FREIGHT  RATES :  SOUTHERN  TERRITORY 

bers  at  the  top  of  the  table  refer  to  the  groups  listed 
below  the  table. 

TABLE  56 

Basis  for  Construction  of  Commodity  Rates  to  New 

Orleans,  La. 


Groups 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

7 

5 

8 

9 

10 

13 

15 

8 

6 

9 

10 

10 

11 

14 

16 

9 

7 

10 

11 

11 

12 

15 

17 

10 

5 

.'s 

8 

11 

12 

12 

13 

16 

18 

11 

6 

6 

9 

12 

13 

13 

14 

17 

19 

12 

7 

7 

10 

13 

14 

14 

15 

18 

20 

13 

8 

8 

11 

14 

15 

15 

16 

19 

21 

14 

9 

9 

12 

15 
16 
17 

16 

16 

17 

20 

22 

is 

io 

io 

i3 

i7 

17 

is 

2i 

23 

16 

11 

11 

14 

18 

18 

18 

19 

22 

24 

17 

12 

12 

15 

19 

19 

19 

20 

23 

25 

18 

13 

13 

16 

20 

20 

20 

21 

24 

26 

19 

14 

14 

17 

21 

21 

21 

22 

25 

27 

20 

15 

15 

18 

22 

22 

22 

23 

26 

28 

21 

16 

16 

19 

23 

23 

23 

24 

27 

29 

22 

17 

17 

20 

24 

24 

24 

25 

28 

30 

23 

18 

18 

21 

25 

25 

25 

26 

29 

31 

24 

19 

19 

22 

26 

26 

26 
27 

27 
28 

30 

32 

25 

20 

20 

23 

27 

27 

28 

29 

26 

21 

21 

24 

28 

28 

29 

30 

3i 

33 

27 

22 

22 

25 

29 
30 

29 
30 

30 

31 

32 

34 

28 

23 

23 

26 

31 

31 

31 

32 

33 

35 

Group  1 

.—St. 

Louis-Louisville. 

Gr 

oup  6.- 

— Indianapolis,  Ind. 

Group  2 

.—Cairo,  III. 

Group  7.- 

—Springfield, 

111. 

Group  3 

. — Nashville, 

Tenn. 

Group  8.- 

—Peoria,  111. 

Group  4 

. — Evansville 

,  Ind. 

Group  9.- 

-Chi 

cago,  111 

Group  5 

. — Cincinnati 

,  Ohio. 

Group  10.- 

—Milwaukee, 

Wis. 

notes  explaining  application  of  differential  scale  for 
computing  commodity  rates 

Note  1. — The  rates  shown  are  in  cents  per  100  pounds. 

Note  2. — "When  a  rate  is  made  from  any  basing  point,  the 
figures  in  the  same  line  across  the  page  are  the  rates  from  the 
other  basing  points  to  the  same  destination.    To  illustrate,  if  a 


MISSISSIPPI  VALLEY  TERRITORY  249 

rate  of  26  cents  per  100  pounds  is  made  on  any  commodity  from 
St.  Louis  or  Louisville  to  New  Orleans,  the  rates  from  other 
points  are :  From  Cairo,  21  cents ;  Nashville,  21  cents ;  Evans- 
ville,  24  cents;  Cincinnati,  28  cents;  Indianapolis,  28  cents; 
Springfield,  29  cents ;  Peoria,  30  cents ;  Chicago,  31  cents ;  Mil- 
waukee, 33  cents.  If  the  rate  is  first  made  31  cents  from  Chi- 
cago, the  rates  from  other  basing  points  are  those  named  in 
this  note,  by  the  application  of  the  same  rule. 

Note  3. — In  applying  the  differential  scale,  where  a  blank 
occurs  the  first  figure  beneath  such  blank  and  in  the  same  col- 
umn is  the  rate  to  be  used.  Illustration :  If  a  rate  of  16  cents 
be  established  from  Cincinnati  to  New  Orleans  on  any  com- 
modity, the  rate  from  Louisville  to  New  Orelans  on  the  same 
commodity  would  be  15  cents,  which  is  the  first  figure  in  the 
Louisville  column  beneath  the  blank  space  appearing  in  the 
same  line  across  the  page  opposite  16  cents  from  Cincinnati. 

Note  4. — When  rates  with  fractions  are  made  from  any  bas- 
ing point,  the  same  fraction  is  added  to  the  rates  from  other 
basing  points,  except  that  this  rule  does  not  make  from  any 
basing  point  a  higher  rate  than  that  opposite  a  figure  from  the 
first  basing  point  which  is  higher  than  the  rate  to  which  the 
fraction  was  first  added.  Illustration :  If  a  rate  of  151/2  cents 
per  100  pounds  is  first  established  from  Cincinnati  to  New  Or- 
leans, the  rate  from  Nashville  to  New  Orleans  is  dYo  cents; 
but  if  a  rate  of  lOV^  cents  is  first  established  from  Cincinnati 
to  New  Orleans,  the  rate  from  Nashville  to  New  Orleans  is  not 
514  cents,  but  5  cents,  which  is  the  rate  from  Nashville  oppo- 
site the  rate  from  Cincinnati  next  higher  than  the  rate  to 
which  the  fraction  was  first  added. 

Note  5. — When  a  rate  is  made  per  barrel,  per  ton,  or  per 
car,  such  rate  is  to  be  reduced  to  cents  per  100  pounds  (car- 
rying the  decimal  to  hundredths)  and  the  rule  in  Note  2  ap- 
plied to  ascertain  the  rates  from  other  basing  points;  the 
rates  so  determined  should  then  be  computed  per  barrel,  per 
ton,  or  per  car,  as  the  case  may  be,  to  correspond  with  the 
rate  from  the  point  from  which  it  was  first  made.  Illustra- 
tion: If  a  rate  of  $3.00  per  ton  of  2,000  pounds,  which  is 
equivalent  to  15  cents  per  100  pounds,  is  made  from  St.  Louis 


250       FREIGHT  RATES:  SOUTHERN  TERRITORY 

or  Louisville  to  New  Orleans,  the  rates  from  other  points  are : 
From  Cairo  and  Nashville,  $2.00 ;  from  Evansville,  $2.60,  etc. 

When  a  rate  per  gross  ton  of  2,240  pounds  or  per  long  ton 
of  2,268  pounds  is  made  from  any  basing  point,  such  rate 
should  be  reduced  to  cents  per  100  pounds  (carrying  the 
decimal  to  hundredths)  and  corresponding  rates,  according  to 
Note  2,  applied  from  other  basing  points,  observing  the  rule  in 
Note  4  as  to  the  use  of  fractions.  Illustration :  If  a  rate  of 
$3.00  per  ton  of  2,240  pounds,  which  is  equivalent  to  13.39 
cents  per  100  pounds,  is  made  from  St.  Louis  or  Louisville  to 
New  Orleans,  the  rates  (per  ton  of  2,240  pounds)  from  other 
basing  points  are :  From  Cairo  and  Nashville,  $1.88  (8.39  cents 
per  100  pounds) ;  from  Evansville,  $2.55  (11.39  cents  per  100 
pounds) ;  from  Cincinnati,  $3.22  (14.39  cents  per  100  pounds) ; 
from  Indianapolis  and  Springfield,  $3.45  (15.39  cents  per  100 
pounds) ;  from  Peoria,  $3.67  (16.39  cents  per  100  pounds) ; 
from  Chicago,  $4.34  (19.39  cents  per  100  pounds) ;  from  Mil- 
waukee, $4.79  (21.39  cents  per  100  pounds). 

Exceptions  to  Note  5. — The  rules  in  Note  5  do  not  apply  in 
making  rates  per  car  on  live  stock. 

Note  6. — Basis  for  carload  rates  on  live  stock :  In  making 
rates  on  live  stock  from  defined  territories  north  of  the  Ohio 
River  and  east  of  the  Mississippi  River,  the  following  rule  ap- 
plies :  Take  St.  Louis  and  Louisville  as  a  basis  (the  rates  from 
those  points  to  be  considered  as  applying  for  an  estimated 
weight  of  20,000  pounds  per  car) ;  reduce  the  carload  rate  to 
cents  per  100  pounds,  and  then  apply  the  differential  scale  as 
provided  in  Note  2,  the  rates  thus  fixed  in  cents  per  100 
pounds  on  the  differential  scale  to  be  established  per  carload 
on  the  basis  of  estimated  weight  of  20,000  pounds. 

In  Table  57  are  given  some  representative  commodity 
rates  currently  in  effect  from  St.  Louis,  Mo.,  to  New  Or- 
leans, La.  It  should  be  understood  in  connection  with 
these  rates  and  all  others  shown  in  these  treatises  that 
in  case  of  actual  use  they  should  be  confirmed  by  inquir- 
ing of  the  interestexl  carrier. 


MISSISSIPPI  VALLEY  TERRITORY 


251 


TABLE  37 

Commodity  Rates  from  St.  Louis,  Mo.,  to  New  Orleans,  La. 


Commodity 


Rate  in  Cents 


Agricultural  implements,  C.  L.,  min.  wt.  20,000  lbs.,  viz.: 
Corn  planters,  cotton  choppers,  cotton  planters,  culti- 
vators, field  rollers,  grain  drills,  guano  distributors,  har- 
rows, plows,  potato  diggers,  potato  planters,  seed  sowers 
(not  hand),  stalk  cutters  (field),  transplanters,  and  parts 
thereof  when  shipped  in  carloads  with  implements 
named • 

Asphalt  (asphaltum),  natural  or  by  product,  solid,  C.  L., 
min.  wt.  40,000  lbs.,  and  liquid  other  than  paint,  stain, 
or  varnish,  in  barrels  or  iron  drums,  min.  wt.  40,000  lbs. . 

Cement,  portland  or  natural,  in  barrels  or  sacks,  C.  L.,  min. 
wt.  40,000  lbs.  (in  cents  per  ton  of  2,000  lbs.) 

Coal,  C.  L.,  min.  wt.  capacity  of  car  (in  cents  per  ton  of 
2,000  lbs.). 

Food  preparations,  viz.: 

Oatmeal,  rolled  oats,  rolled,  cracked,  crushed,  or  flaked 
wheat,  flaked  rye,  flaked,  rolled,  and  pearl  barley,  hom- 
iny grits,  and  flaked  hominy,  packed  or  in  barrels,  kegs, 
drums,  and  half  barrels  or  in  cotton  or  gunny  sacks: 

C.  L 

L.  C.  L... 

Iron  and  steel  articles: 

Rails,  C.  L.,  min.  wt.  20  gross  ton  (in  cents  per  ton  of 
2,240  lbs.) ; 

Railroad  track  material,  viz.: 

Chains,  cross  ties,  clamps,  or  fastenings,  steel;  frog  fill- 
ings, frog  nut  locks  and  spikes,  spUce  bars,  switch  chains, 
switches,  switch  stands,  tie  plates,  track  bolts,  track 
brans,  track  nuts,  washers,  C.  L.,  min.  wt.  24,000  lbs. . . 

Leather  sole,  in  boxes,  rolls,  or  burlapped  bales,  L._C.  L. . . . 

Pipe  sewer,  min.  wt.  25,000  lbs 

Soap  and  washing  powders,  any  quantity 

Soap,  in  boxes  or  barrels,  agreed  to  be  of  value  of  not  ex- 
ceeding 5  cents  per  lb.  and  so  expressed  in  bills  of  lading, 

C.  L.,  min.  wt.  30,000  lbs 

L.  C.  L 

Starch,  C.  L.,  min.  wt.  30,000  lbs 

Tar  and  pitch,  C.  L.,  min.  wt.  40,000  lbs 

Wool  (mineral),  C.  L.,  min.  wt.  24,000  lbs 


35 
18 

mi 

340 


18 
30 


265 


522 
65 

18 
25 


25 
33 
30 
20 
35 


3.  Application  of  Commodity  Bates 


(o)  From  Ohio  River  Points  and  Related  Territory 

These  groups  are  the  same  as  those  shown  m  conjiection 
with  class  rates. 


252         FKEIGHT  RATES :  SOUTHERN  TERRITORY 
(b)  From  Central  Freight  Association  Groups 

These  groups  are  the  same  as  those  shown  in  connec- 
tion with  class  rates. 

4.  Rates  to  Gulf  Ports  and  Mississippi  River  Points 
Made  with  Relation  to  Rates  to  New  Orleans 

The  rates  from  the  St.  Louis-Louisville  group  to  New 
Orleans  having  been  established,  the  New  Orleans  basis 
of  rates  was  established  to  other  Gulf  ports  and  Mis- 
sissippi River  points  as  follows: 

To  Mobile,  Ala. — The  same  causes  that  brought  about 
the  rates  to  New  Orleans  influenced  the  rates  to  Mobile, 
Ala.,  viz.,  active  water  competition  via  the  Mississippi 
River,  the  Mississippi  Sound,  and  the  Gulf  of  Mexico. 

To  Gulf  port,  Miss. — This  port  is  located  on  the  Louis- 
ville &  Nashville  Railroad  from  Louisville  to  New 
Orleans,  almost  midway  between  Mobile  and  New  Or- 
leans. It  competes  with  Mobile,  Ala.,  for  export  and 
import  traffic,  and  the  similarity  of  position  and  trans- 
portation conditions  justified  the  application  of  the 
same  rates  as  to  Mobile. 

To  Baton  Rouge  and  Bayou  Sara,  La.,  Dickerson, 
Friar's  Point,  Greenville,  Natchez,  Rosedale,  and  Ses- 
sion, Miss.,  Slidell,  La.,  Vicksbtirg,  Miss.,  and  Vidalia, 
La. — The  above  points  are  located  on  or  adjacent  to 
the  Mississippi  River,  and  the  same  water  competition 
that  has  necessitated  the  rates  to  New  Orleans  has 
prevented  the  maintenance  of  higher  rates  to  the  Mis- 
sissippi River  points  named  above. 

In  addition  to  the  points  enumerated  above,  the  New 
Orleans  basis  of  rates  is  applied  to  quite  a  number  of 
local  stations  in  the  vicinity  of  New  Orleans  on  the 
Texas  &  Pacific  Railway,  Louisiana  Railway  &  Naviga- 


MISSISSIPPI  VALLEY  TERRITORY  263 

tion  Company,  Morgan's  Louisiana  &  Texas  Railroad 
&  Steamship  Company,  Mobile  &  Ohio  Railroad,  New 
Orleans,  Texas  &  Mexico  Railroad,  and  Yazoo  &  Missis- 
sippi Valley  Railroad. 

These  points  enjoy  the  New  Orleans  rates  on  account 
of  their  proximity  to  the  Mississippi  River  and  streams 
tributary  thereto. 

To  Pensacola,  Fla. — The  rates  to  Pensacola,  Fla., 
are  the  same  as  the  rates  to  Mobile,  Ala.,  except  from 
Cairo,  III,  from  which  point  they  are  the  following 
differentials  higher  than  the  rates  to  Mobile : 

Classes 1     2     3    4     5     6ABCDEHF 

Differentials 12    9765424   4J    5579 


CHAPTER  XVII 


CONSTRUCTION  OF  RATES  FROM  ST.  LOUIS,  MO.,  OHIO 
RIVER  CROSSINGS,  AND  RELATED  POINTS 


1.  Adjustment  to  Memphis,  Tenn. 

As  in  the  case  of  New  Orleans,  the  rates  from  St. 
Louis  to  Memphis  were  fixed,  primarily,  to  meet  water 
competition  on  the  Mississippi  River,  the  water  rates, 
to  which  were  added  certain  differentials,  approximating 
the  cost  of  insurance,  etc.,  being  adopted.  While  today 
there  is  water  service  between  St.  Louis  and  Memphis, 
it  is  not  as  important  in  amount  as  it  was  a  decade 
or  so  ago.  The  potentiahty  of  the  competition,  how- 
ever, has,  as  in  the  case  of  New  Orleans,  served  to  keep 
the  rates  at  substantially  not  greater  than  the  old  level. 
Again,  while  there  is  evidence  that  in  the  old  days  the 
competition  afforded  by  ocean  service  between  the  East 
and  New  Orleans,  in  connection  with  boat  service  up 
the  Mississippi  River,  had  some  influence  in  the  adjust- 
ment of  rates  from  the  West,  it  does  not  appear  to 
have  been  a  factor  in  measuring  any  of  the  present 
rates.  Some  of  the  commodity  rates  to  Memphis,  as 
they  now  exist,  have  been  fixed  due  to  various  condi- 
tions, without  regard  to  water  competition,  and,  as  has 
been  stated  in  connection  with  the  New  Orleans  rates, 
the  lines  operating  west  of  the  Mississippi  River  are  a 
strong  influence  in  the  adjustment  of  rates  from  St. 
Louis  and  the  Central  West  to  Memphis. 

254 


8T.  LOUIS  AND  RELATED  POINTS  255 

2,  Geouping  of  Teekitoby 

In  the  application  of  these  rates  Central  Freight 
Association  and  Western  Trunk  Line  territories  are 
divided  into  groups,  the  description  and  designation 
being  the  same  as  applied  in  the  New  Orleans  adjust- 
ment from  these  territories. 

3.  Class  Rates 

The  class  rates  from  the  St.  Louis-Louisville  group, 
which  are  used  as  a  basis  for  the  construction  of  rates 
from  the  other  groups,  are  as  follows,  governed  by  the 
Southern  Classification : 

Classes 1     23456ABCDEHF 

Rates 65  50  45  35  30  25  15  26  15  12  20  42  30 

4.  AlPplication  of  Rates 
(a)  From  Ohio  River  Points  and  Related  Territory 

From  the  groups  shown  in  Table  58  through  rates 
are  constructed  by  adding  or  deducting  the  differentials 
set  forth  in  the  table  to  or  from  the  St.  Louis-Louisville 
rates  as  shown  above. 

The  addition  or  subtraction  of  the  differentials  shown 
to  or  from  the  St.  Louis  rates  will  produce  the  figures 
shown  in  Table  59,  which  are  the  rates  currently  in 
effect. 

(b)  From  Central  Freight  Association  Territory 

The  rates  from  other  points  in  Central  Freight  Asso- 
ciation Territory  are  constructed  by  adding  the  same 


256       FBEIGHT  RATES :  SOUTHERN  TERRITORY 

TABLE  58 

DiFFEEENTIALS   ApPLIC.^LE   FROM    GrOUPS   LoCATED   ON    OR 

Related  to  the  Ohio  River 


Differentials  Over  or  Under,  as  Indi- 
cated, THE  St.  Louis-Memphis  or 
Louisville-Memphis  Rates 

Fbom  Groups 

Differentials    in    Cents   per    100   Pounds 
Except  as  Noted 

Classes' 
123456ABCDEHF« 

Cairo  (under) 

15  12  10    8     7     6    4     6  5       3    5  10  10 

Nashville  (under) 

15  12  10    8     7     6    4     6  5      5     5  10  10 

Evansville  (under) 

33322222  2|     2235 

Cincinnati  (over)^ 

10  10  10    5     5    5     5    4  5      5    4     7  10 

Indianapolis  (over) 

Springfield  (over) 

10  10  10    5     5     5     5     4  5      5    4    7  10 
888444342      2354 

Peoria  (over) 

14  11     9655443      3466 

Chicago  (over) 

Milwaukee  (over) 

20  15  10    8    7     6    6    6  6      6    5    8  12 
26  20  14  11     9    8    8    8  8      8    7  11  16 

'Governed  by  the  Southern  Classification. 

'Per  barrel. 

'Not  greater  per  mile  than  from  Louisville. 

differentials  or  applying  the  same  rates  as  were  em- 
ployed in  the  New  Orleans  adjustment.  For  example,  if 
it  is  desired  to  construct  rates  from  the  Detroit-Toledo 
group  to  Memphis,  Tenn.,  on  referring  to  page  242, 
Group  E,  it  will  be  seen  that  the  same  rates  as  are  in 
effect  from  Milwaukee  are  to  be  applied.  Accordingly, 
the  rates  from  Detroit-Toledo  will  be  made  the  Mil- 
waukee group  differentials  over  the  St.  Louis  rates, 
resulting  in  through  rates  as  shown  in  Table  59. 

5.   Adjustment   from   Points   in   Southern   Territory 


From   Decatur,  Florence,   Sheffield,   and   Huntsville, 
Ala. — The  rates  are  arbitrarily  fixed. 


ST.  LOUIS  AND  RELATED  POINTS 


257 


TABLE  59 

Class  Rates  to  Memphis,  Tenn.,  from  Points  On  and 
North  of  the  Ohio  River 


From  Groups 


St.  Louis 

Cairo 

Nashville 

Cincinnati 

Springfield 

Peoria 

Chicago 

Milwaukee 

Evansville* 

Vincennes 

Indianapolis .  .  . . 

Ft.    Wayne- 
Columbus  .... 

Detroit-Toledo . . 

Cleveland 

ffalo- 
Pittsburgh. .  .  . 

Howard  City .  .  . 

Owendale 

Clare 

Cadillac, 

Traverse  City. .  . 

Cheboygan 

Manistique^  . . .  . 

Kentucky 


Rates  in  Cents  per  100  Pounds  Except  as  Noted 


1       2      3 


Classes' 
6      A     B 


C     D^     E     H     F» 


65  50 

50  38 

50  38 

75  60 

73  58 

79  61 

85  65 

91  70 

62  47 

65  50 

75  60 


45  35 

35  27 

35  27 

55  40 

53  39 

54  41 

55  43 
59  46 
42  33 
45  35 
55  40 


30  25 

23  19 

23  19 

35  30 

34  29 

35  30 
37  31 
39  33 
28  23 
30  25 
35  30 


15  26 

11  20 

11  20 

20  31 

18  30 

19  30 

21  32 
23  34 
13  24 
15  26 

20  31 


15  12 

10  7 

10  7 

20  17 

17  14 

18  15 

21  18 
23  20 
12i  10 
15  12 
20  17 


20  42  30 

15  32  20 

15  32  20 

24  49  40 

23  47  34 

24  48  36 

25  50  42 
27  53  46 
18  39  25 
20  42  30 
24  49  40 


85  65  55  43  37  31  21  32  21  18  25  50  42 
91  70  59  46  39  33  23  34  23  20  27  53  46 
91  70  59  46  39  33  23  34  23  20  27  53  46 


91  70 

96  74 

97  75 
100  78 
102  79 
108^  85 
HI  87 

88  671 

87  70 


59  46 
62i  481 
63  49 
66  51 
66  51 
70J  54 
73  56 
57  44§ 
63  46 


39  33  23 

401  34  24 

41  35  25 

43  35^  251 

43  36  26 

45  38  28 

47  39  29 

38  32  22 

39  33  23 


34  23 

35  24 

36  25 
361  251 

37  26 

39  28 

40  29 

33  22 

34  23 


20  27 

21  28 

22  29 
22^  29^ 

23  30 

25  32 

26  33 

19  26 

20  28 


53  46 

54  48 

55  50 
55^  51 

56  52 

58  56 

59  58 
51  44 
55  46 


'Governed  by  the  Southern  Classification. 

^Class-D  rates  named  herein  do  not  apply  on  carload  and  less-than-carload 
shipments  of  hay.  A  combination  of  local  rates  applies.  On  shipments  of 
mixed  carloads  of  hay,  grain,  and  grain  products,  a  combination  of  locals 
applies  on  the  hay,  and  Class-D  rates  apply  on  the  grain  and  grain  products. 

'Per  barrel. 

^Rates  shown  herein  do  not  apply  from  Evausville,  Ind.,  proper.  For 
rates  refer  to  Agent  M.  P.  Washburn's  I.  C.  C.  No.  119,  supplements  thereto 
and  reissues  thereof. 

^Applicable  only  on  trafi'ic  originating  beyond. 

.  From  Knoxville,  Tenn. — Specific  rates  are  made  which 
are  2  cents  per  100  pounds  under  the  rates  from  Knox- 
ville to  Evansville. 

From  Atlanta,  Ga. — The  rates  are  generally  made  the 
same  as  the  rates  in  the  opposite  direction. 


258        FliElUHT  KATES  :  SOUTHERN  TERKITO  liV 

From  Augusta,  Ga. — The  rates  are  made  the  follow- 
ing differentials  over  the  rates  from  Atlanta: 

Classes 1     2    3    4    5    6ABCDEHF 

Differentials 3     3     32222222224 

The  commodity  rates  are  made  4  cents  over  the  rates 
from  Atlanta. 

From  Macon  and  Savannah,  Ga.,  and  points  taking 
the  same  rates  as  Savannah,  Chattanooga,  Tenn.,  Bir- 
mingham, Montgomery,  and  Selma,  Ala.,  and  Other 
Southeastern  Common  Points. — The  rates  are  made  the 
following  differentials  under  the  corresponding  rates 
to  Louisville: 

Classes 1     2    3    4    5     6    ABCDEHF 

Differentials 4     4     4     4     4     4     4     4     4     4     4     4     8 

The  commodity  rates  are  made  4  cents  under  the  rates 
to  Louisville. 

From  Mobile,  Ala. — The  general  adjustment  is  made 
the  same  as  the  southbound,  but  rates  on  various  north- 
bound commodities  are  adjusted  on  their  respective 
merits. 

From  west  Tennessee  and  junctions  in  interior  Mis- 
sissippi Valley  Territory,  the  rates  in  the  reverse 
direction  are  generally  applied,  except  on  commodities 
concerning  which  there  are  peculiar  circumstances  dif- 
ferentiating them  from  the  ordinary  run,  as  on  lumber, 
for  example.  An  understanding  of  such  cases  may  be 
had  from  the  description  hereinafter  given. 

From  local  points  in  Mississippi  Valley,  Southeastern, 
and  Kentucky-Tennessee  territories,  the  lowest  com- 
bination is  generally  employed,  except  where  the  local 
scales  of  any  continuous  line  make  less. 

From  Carolina  Territory,  numerous  rates  are  made 
on  a  definite  relationship  with  the  corresponding  rates 


ST.  LOUIIS  AND  RELATED  POINTS 


259 


from  the  Virginia  Cities;  otherwise  the  general  basis 
is  the  lowest  combination. 

Bates  from  eastern  territory  to  Memphis  are  made 
from  New  York,  the  Trunk  Line  relative  adjustment 
applying  from  other  places.  These  rates  reflect  water 
competition  down  the  Ohio  and  Mississippi  rivers  from 

TABLE  60 

Basis  fob  Constructiojst  of  Commodity  Rates  to 

Memphis 


Groups 

1 

2 

3    4 

5 

6 

7 

8 

9 

10 

10 

12 

6 

. . 

6 

'9 

"7 

's 

11 

13 

,  ^ 

7 

10 

6 

. 

8 

11 

'8 

'9 

12 

14 

7 

■5 

9 

12 

9 

10 

13 

15 

8 

6 

10 

13 

10 

11 

14 

16 

•  » 

11 

9 

'.'.         '7 

12 

14 

ii 

i2 

i5 

i7 

10 

)    6    8 

13 

15 

12 

13 

16 

18 

11 

i    6    9 

14 

16 

13 

14 

17 

19 

12 

7          7        10 

15 

17 

14 

15 

18 

20 

,  , 

, 

. 

16 

13 

{ 

J    8    11 

17 

is 

is 

i6 

19 

2i 

14 

( 

J    9    12 

18 

16 

17 

20 

22 

,  , 

, 

17 

18 

15 

1( 

i)   io   is 

19 

i9 

18 

19 

21 

23 

16 

1 

I    11    14 

20 

20 

19 

20 

17 

i: 

2    12    15 

21 

21 

20 

21 

22 

24 

18 

i; 

5    13    16 

22 

22 

21 

22 

23 

25 

19 

1' 

I    14    17 

23 

23 

22 

23 

24 

26 

20 

1. 

5    15    18 

24 

24 

23 

24 

25 

27 

21 

i( 

}    16    19 

25 

25 

24 

25 

26 

28 

22 

20 

26 

26 

25 

26 

27 

29 

23 

r 

7        17    21 

27 

27 

26 

27 

28 

30 

24 

IJ 

3    18    22 

28 

28 

27 

28 

29 

31 

«  • 

. 

29 

29 

28 

29 

30 

32 

25 

i< 

J    19   23 

30 

30 

29 

30 

31 

33 

20 

2( 

3   20   24 

31 

31 

30 

31 

32 

34 

27 

25 

32 

32 

31 

32 

33 

35 

28 

2 

I    21    26 

33 

33 

32 

33 

34 

36 

Group  1. — St.  Louis-Louisville. 
Group  2.— Cairo,  111. 
Group  3. — Nashville,  Tenn. 
Group  4. — Evansville,  Ind. 
Group  5.  —Cincinnati,  Ohio. 


Group    6. — Indianapolis,  Ind. 
Group    7. — Springfield,  111, 
Group    8. — Peoria,  111. 
Group    9. — Chicago,  111. 
Group  10. — Milwaukee,  Wis. 


260         i'KElGHT  KATES:  SOUTHERN  TEBBITOBY 

Pittsburgh,  Cincinnati,  etc.,  which  was  at  one  time  very 
potent,  and  to  some  slight  extent  the  still  earlier  com- 
petition via  the  ocean  and  the  Mississippi  River. 

Specific  rates  are  made  from  the  Virginia  Cities  to 
Memphis. 

6.  Commodity  Rates 

(a)  From  Ohio  River  Points  and  Related  Territory 

The  commodity  rates  to  Memphis  are  made  by  the 
use  of  a  differential  scale  similar  to  that  used  in  con- 
nection with  the  rates  to  New  Orleans,  an  illustration  of 
which  is  shown  in  Table  60. 

See  pages  248  to  251  for  notes  explaining  the  applica- 
tion of  the  differential  scale  for  computing  commodity 
rates. 

7.  Application  of   Commodity  Rates 

(a)  Groups  From  Which  Commodity  Rates  Apply 

In  the  application  of  the  commodity  basis  the  same 
territorial  grouping  is  employed  as  is  used  in  connection 
with  the  class  rates. 

8.  Rates  From  Trunk  Line  Territory 

{a)  All-Rail  Rates 

In  the  application  of  rates  from  Trunk  Line  and  New 
England  territories  Memphis,  Tenn.,  is  treated  as  a 
Mississippi  River  Crossing  and  rates  are  published  in 
accordance  with  the  basis  set  forth  for  the  construction 
of    rates    in     Official     Classification     Territorv.     This 


ST.  LOUIS  AND  RELATED  POINTS  261 

is  due  to  the  fact  that  the  Southern  Railway  and  its 
eastern  connections  as  well  as  other  lines  which  operate 
through  Southern  Classification  Territory  are  in  compe- 
tition with  the  Trunk  Line  and  Central  Freight  Asso- 
ciation lines  for  eastbound  and  westbound  traffic 
originating  in  or  destined  to  points  west  of  the  Missis- 
sippi River  and  to  do  so  successfully  the  rates  via  their 
routes  must  be  on  a  parity  with  those  of  the  northern 
lines.  The  current  all-rail  rates,  governed  by  the  Official 
Classification,  are  as  follows : 

Classes....      12  3  4  6  6 

Rates 100  85  65  45  38  32 

(b)  Rail-and-W ater  Rates 

The  water  lines  serving  such  South  Atlantic  Ports  as 
Wilmington,  N.  C,  Charleston,  S.  C,  Savannah  and 
Brunswick,  Ga.,  and  Jacksonville,  Fla.,  also  compete 
for  this  traffic  and  have  established  a  proportional  scale 
of  rates  from  the  Eastern  Cities  to  the  Mississippi 
River  on  traffic  destined  beyond,  which  rates  are  con- 
siderably less  than  the  rates  of  the  all-rail  lines 
operating  through  either  Official  or  Southern  classifica- 
tion territories.  The  present  scale  is  as  follows  in  cents 
per  100  pounds : 

Classes....  1    2    3    4    6    6   R25   R26  R28 
Rates 72    64    47    36    30   26    54    38    40 

These  rates  are  governed  by  the  Official  Classification. 
The  rates  apply  from  Boston,  Mass.,  New  York,  N.  Y., 
Philadelphia,  Pa.,  and  Baltimore,  Md.,  and  from  such 
points  as  are  shown  as  taking  the  same  rates  in  the 
publications  of  the  water  carriers,  which  vary  some- 
what from  the  all-rail  grouping  of  Trunk  Line  and  New 
England  territories  shown  on  Maps  9  and  10  of  the 
Atlas  of  Traffic  Maps. 


262       FREIGHT  RATES :  SOUTHERN  TERRITORY 

These  rates  may  be  ascribed  to  the  keen  competition 
of  recent  years  between  the  line  and  independent  water 
carriers  serving  the  South  Atlantic  Ports  and  those  oper- 
ating through  the  Gulf  Ports.  In  some  cases  the  compe- 
tition has  been  so  severe  that  it  has  been  necessary  to 
suspend  or  cancel  the  through  tariffs  and  handle  the 
traffic  on  a  combination  of  rates  to  and  from  the  ports. 

9.  Fourth  Section  Ordees 

Such  orders  as  have  been  announced  by  the  Inter- 
state Commerce  Commission  affecting  points  in  the 
adjustment  discussed  in  this  chapter  are  reproduced  in 
Appendix  C. 


CHAPTER  XVni 

RATES  TO  INTERIOR  MISSISSIPPI  VALLEY  POINTS 

This  chapter  treats  of  the  bases  used  in  constructing 
rates  to  interior  points  in  Mississippi  Valley  Territory. 
These  interior  points  are  both  local  and  junction  points, 
and,  while  some  of  them  are  not  interior  points  in  the 
sense  that  they  are  removed  from  navigable  waterways, 
their  location  upon  the  streams  is  such  that  the  competi- 
tion of  water  carriers  from  other  markets  has  been 
greatly  minimized. 

1.    To  Local  Stations  in  Mississippi  Valley  Tekeitory 

Generally  speaking,  the  adjustment  of  rates  to  local 
stations  is  peculiar  to  the  individual  carriers. 

In  some  cases  the  rates  from  certain  specified  basing 
points,  such  as  Cairo,  111.,  and  Memphis,  Tenn.,  are  fixed 
and  the  rates  from  other  points  of  origin  are  made  by 
applying  the  differentials  used  in  making  the  rates  to 
common  points  in  the  vicinity  of  such  local  points;  in 
other  cases  the  rates  are  made  certain  differentials  over 
the  rates  to  adjacent  common  points;  and  in  still  other 
cases  they  are  made  on  the  lowest  combination. 

To  illustrate  more  clearly,  a  few  examples  are  given 
of  the  adjustment  to  points  on  a  few  of  the  principal 
roads  in  the  territorv. 

263 


264       FREIGHT  RATES :  SOUTHERN  TERRITORY 

(a)    To  Local  Stations  on  the  Alabama  S   Vichsburg 
Railway  and  Neiv  Orleans  <&  Northeastern  Railroad 

The  class  and  commodity  rates  to  local  stations  on 
the  Alabama  &  Vicksburg  Raihvay  and  New  Orleans  & 
Northeastern  Railroad  are  made  by  adding  the  differ- 
entials shown  in  Tables  61  and  62  to  the  rates  to  Jack- 
son or  Meridian,  Miss. 

TABLE  61 

Adjustment  of  Class  Rates  to  Stations  on  the  Ala- 
bama &  ViCKSBUEG  Railway  and  New  Orleans  & 
Northeastern  Railroad  From  Ohio  and  Missis- 
sippi RnrER  Crossings,  Nashville  and 
Chattanooga,  Tenn. 


To  Gbodps 

Differentials  in  Cents  per  100  Pocnds 
Except  as  Noted 

Remarks 

1 

2 

Classes' 
3         4         5 

6 

A        B 

\i 

10 

20 
20 

9 
17 

17 

9         7 
15       12 
15       12 

5 
9 
9 

3 

6 

6 

3         3 

5          5 
5         5 

Over  rates  to  Jack- 

2«  

son  or  Meridian, 

3' 

Miss. 

To  Gboups 

Differentials  in  Cents  per  100  Pounds 
Except  as  Noted 

Remarks 

C 

D! 

Classesi 
D»         E 

H 

Fs  4       F' « 

1» 

8 
12 
12 

3 

6 
6 

6           7 
10         12 
10         12 

7 
12 
12 

7         16 
11         24 
11         24 

Over  rates  to  Jack- 

2«  

son  or  Meridian, 

37 

Miss. 

iGoverned  by  the  Southern  Classification. 

«C.  L. 

«L.  C.  L. 

•Per  barrel. 

^The   following  stations,   located  on  the  Alabama  &  Vlcksburg   Railway,   comprise 

Group  1: 

Dixon,  Miss.  Champion  Hill,  Miss.  Bovina,  Miss. 

Clinton,  Miss.  Edwards,  Miss.  Newmans,  Miss. 

Norrell,  Miss.  Smiths,  Miss.  Military  Park,  Miss. 

Bolton,  Mise.  Beecbwood,  Miss. 


INTERIOR  MISSISSIPPI  POINTS 


265 


•The  following  etatlone,  located  on  the  Alabama  &  Vicksburg  Railway,  comprii* 
Group  2: _ 

Thomas  Spur,  Miss. 

Lawrence,  Miss. 

Lake,  Miss. 

Broach,  Miss. 

Schryver.  Miss. 

Muskegon,  Miss. 

Forest,  Miss. 

Raworth,  Miss. 

Kalem  Spur,  Miss. 

Morton,  Miss. 

Clarksburg,  Miss. 

'The  following  stations,  located  on  the  New  Orleans  &  Northeastern  Railroad,  comprise 
Group  3: 

Durham,  Miss. 


Lost  Gap,  Miss. 
Grahams,  Miss. 
Meehan  Jet.,  Miss. 
Point,  Miss. 
Chunky.  Miss. 
Ragland,  Miss. 
Weatherford,  Miss. 
Hickory,  Miss. 
Paula,  Miss. 
Skinner  and  Simmons, 
Miss. 


Pelahatchie,  Miss. 
Milroy,  Miss. 
Guide,  Miss. 
Rankin,  Miss. 
Lackey,  Miss. 
Brandon,  Miss. 
Rice  Hill,  Miss. 
Greenfield,  Miss. 
Howell,  Miss. 
Pearsons,  Miss. 


Arundel,  Miss. 
Savoy,  Miss. 
Bullard,  Miss. 
Basic,  Miss. 
Wautubbie,  Miss. 
Beatrice,  Miss. 
Pachuta,  Miss. 
Barnett,  Miss. 
Vossburg,  Miss. 
Heidelberg,  Miss. 
Haney,  Miss. 
Sandersville,  Miss. 
Errata,  Miss. 
Hawkes,  Miss. 
Anderson,  Miss. 
Alice,  Miss. 
Tawanta,  Miss. 
Moselle,  Miss. 


Albertson's  Mill,  Miss. 
Norman,  Miss. 
Eastabutchie,  Miss. 
Gunn  Spur,  Miss. 
Petal,  Miss. 
Bon  Homme,  Miss. 
Richburg,  Miss. 
Okahola,  Miss. 
Purvis,  Miss. 
Harmon,  Miss. 
Tolowah,  Miss. 
Piotona,  Miss. 
Lumberton,  Miss. 
Red  Top,  Miss. 
Hatten  Spur,  Miss. 
Hillsdale,  Miss. 
Orvisburg,  Miss. 


Poplarville,  Miss. 
Derby,  Miss. 
Tyler,  Miss. 
Millard,  Miss. 
Log  Spur,  Miss. 
McNeil.  Miss. 
Tate,  Miss. 
Watson's  Spur,  Miss. 
Carriers,  Miss. 
Ozona,  Miss. 
Richardson,  Miss. 
Rosa,  Miss. 
Picayune,  Miss. 
Nicholson,  Miss. 
Benton,  La. 
Honey  I  iland.  La. 
Pearl  River,  La. 
St.  Joe,  La. 
Alton,  La. 


TABLE  62 

Adjustment  of  Commodity  Rates  to  Stations  on  the 
Alabama  &  Vicksburg  Railway  and  New  Or- 
leans &  Northeastern  Railroad 


DirFEHENTlAL8> 

IN 

Cents  per  100  Pounds  Except 

AS 

Noted 

Commodities  in 

Carloads 

To  GROT7PB 

a 
1 

i 

jtf 

REMARXa 

•a 

a 

o 

OS 
CD 

2 

eg 

1 

4 

0 

et 

1 

0 

w 

a 

01 

8 

a 

u 
3 
0 

a 

s 

3 

a 
■3 

•a  C 

OS  ^ 

1^ 

"3 

03 

0 
a 
0 

a 
•c 

V 

0 
a 
3 

U 

fa 

(K 

h-i 

hJ 

O 

PM 

tf 

CD 

m 

CO 

> 

1« 

3 
5 
5 

3 
5 
5 

3.5 
5.5 
5.5 

3 
5 
5 

3 

6 
5 

3 
5 
5 

3 
5 
5 

60 
100 
100 

3 
5 
6 

3 
5 
5 

3 

5 
5 

3 
5 
5 

Over  rates  to  Jack- 

2«  

son  or  Meridian. 

3« 

Miss. 

•Governed  by  the  Southern  Classification. 
'Per  ton.  2,240  pounds. 
'See  footnote  5  to  Table  61. 
<See  footnote  6  to  Table  61. 
•See  footnote  7  to  Table  61. 


266       FREIGHT  RATES:  SOUTHERN  TERRITORY 

From  Knoxville,  Tenn. — The  rates  are  made  the  fol- 
lowing differentials  higher  than  the  rates  from  Chatta- 
nooga : 

Classes 1     23456ABCDEHF 

Differentials 12    976543333336 

From  Birmingham,  Ala. — The  rates  are  made  the 
following  differentials  less  than  the  rates  from  Chat- 
tanooga, but  do  not  exceed  the  lowest  combination. 

Classes 1     2    3    4    5    6ABCDEHF 

Differentials 6544332222224 

The  commodity  rates  are  made  2  cents  less  than  the 
rates  from  Chattanooga. 

To  stations  on  the  New  Orleans  &  Northeastern  Rail- 
road between  Slidell  and  New  Orleans,  La.,  the  rates 
are  the  same  as  those  to  New  Orleans. 

From  Montgomery  and  Selma,  Ala. — The  rates  are 
made  on  the  lowest  combination,  with  Birmingham  rates 
as  maxima.  To  stations  on  the  New  Orleans  &  North- 
eastern Railroad  between  Slidell  and  New  Orleans,  the 
rates  are  the  same  as  those  to  New  Orleans. 

From  Dalton,  Rome,  and  Atlanta,  Ga. — The  rates  are 
the  same  as  those  from  Chattanooga,  with  the  lowest 
combination  as  maxima,  except  that  from  Atlanta  to 
stations. between  Slidell  and  New  Orleans  the  rates  are 
the  same  as  those  to  New  Orleans. 

From  Athens  and  Augusta,  Ga. — To  stations  on  the 
Alabama  &  Vicksburg  Railway  the  rates  are  made  the 
following  differentials  higher  than  the  rates  from 
Atlanta : 

Classes 123456ABCDEHF 

Differentials 6544332222344 

The  commodity  rates  are  made  2  cents  over  the  rates 
from  Atlanta. 


l^iTEK101^  IVIISSISSIPPI  points  267 

To  stations  on  the  New  Orleans  &  Northeastern  Rail- 
road the  rates  are  made  the  following  differentials 
higher  than  the  rates  from  Atlanta: 

Classes 123    456ABCDEHF 

Differentials 3332222222224 

The  commodity  rates  are  made  2  cents  over  the  rates 
from  Atlanta. 

From  Columbus,  Ga.,  and  Southeastern  Points  Not 
Shown  Above,  as  well  as  from  Local  Points  in  the  Same 
Territory. — The  general  basis  is  the  lowest  combina- 
tion. 

From  Trunk  Line,  Central  Freight  Association,  and 
Western  Territories. — The  lowest  combination  gener- 
ally prevails. 

{b)  To  Local  Stations  on  the  Illinois  Central  Railroad 

In  adjusting  rates  from  St.  Louis,  Chicago,  and 
various  other  points  in  Illinois  reached  by  the  Illinois 
Central  Railroad,  and  from  the  Ohio  River,  Memphis, 
etc.,  the  local  adjustments  of  this  line  prevail,  in  which 
the  mileage  scales,  with  the  lowest  combination  as 
maxima,  are  the  principal  factors.  Generally  speaking, 
however,  there  is  a  defined  relationship,  as,  for  ex- 
ample, the  rates  from  Louisville  and  St.  Louis  are 
kept  on  an  equal  plane;  both  have  rates  which  are  dif- 
ferentials higher  than  the  rates  from  Cairo  and  Padu- 
cah;  Chicago  has  a  fixed  relationship  with  St.  Louis 
and  Cairo,  and  the  minimum  rates  carried  from  Nash- 
ville are  those  from  Cairo. 

The  class  rates  from  Cairo  having  been  fixed,  the 
class  rates  from  other  points  of  origin  are  made  certain 
differentials  over  the  rates  from  Cairo. 


268         FREIGHT  RATES :  SOUTHERN  TERRITORY 


TABLE  63 

Differentials  Used  in  Constructing  Class  Rates  from 

Points  Named  to  Local  Stations  on  the 

Illinois    Central   Railroad 


Differentials  in  Cents 

CEPT  AS  N 

PER 
OTED 

100  Pounds  Ex- 

Fbom 

1 

2 

3 

4 

Classes' 
5       6 

C.h. 

A 

L.C.L. 

C.L. 

B 

L.C.L. 

Remabkb 

Memphis 

17 

14 

12 

10 

9 

8 

5 

5 

6 

6 

Under  Cairo  rates 

Evansville 

Louisville 

St.  Louis 

34 
34 
34 
43 
42 
42 
45 

29 
29 
29 
37 
35 
35 
37 

24 
24 
24 
32 
30 
30 
32 

18 
18 
18 
25 
23 
23 
25 

13 
13 
13 
19 
17 
17 
19 

11 
11 
11 
16 
15 
15 
16 

8 
10 
10 

14 
12 
12 
14 

8 
10 
10 
14 
12 
12 
14 

7 
9 
9 
12 
12 
12 
16 

7 
9 
9 
12 
12 
12 
16 

Cincinnati 

Peoria 

Over  Cairo  rates 

Indianapolis 

Chicago 

Milwaukee 

6 

5 

4 

3 

2 

2 

2 

2 

2 

2 

Over  Chicago  rates 

Differentials  in  Cents  per  100  Pounds  Ex- 
cept AS  Noted 

Fbom 

Classes* 
C                  D            E        H             F« 

C.L.    L.C.L.    C.L.    L.C.L.                               C.L.    L.C.L. 

Remarks 

Memphis 

5         5         4         4         8       11       10       10 

Under  Cairo  rates 

Evaosville 

Louisville 

St.   Louis. 

Cincinnati 

Peoria 

5         5         3         3         8       10       10       10 
7         7         5         5       10       12       14       14 
7         7         5         5       10       12       14       14 

12  12       10         9       14       16       24       24 
11       11       10       10       13       17       22       22 
11        11        10        10        13        17        22       22 

13  13       11       11        14       17       26       26 

Over  Cairo  rates 

Indianapolis 

Milwaukee 

22222244 

Over  Chicago  rates 

'Governed  by  the  Southern  Classification. 
»Per  barrel . 

For  example,  the  class  rates  from  Cairo  to  Canton, 
Miss.,  are  as  follows: 

Classes 1         2         3         4         6         6 

Rates 89       71       59       60       43       38 

Classes A  B  C  D  E        H  F 

C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.  C.L.    L.C.L. 

•       Rates 28       33       34       39       29       34       22       26       42       48       47       56 

The  class  rates  from  Evansville,  Ind.,  are  constructed 
by  adding  the  differentials  shown  in  Table  63  to  the 
class  rates  from  Cairo,  111. 


INTERIOR  MISSISSIPPI  POINTS  269 

From  Chattanooga,  Tenn. — To  stations  between  Cairo, 
111.,  and  Grand  Junction,  Tenn.,  the  rates  are  made  the 
following  differentials  higher  than  the  rates  from  Nash- 
ville: 

Classes 1     2     3     4     5     6ABCDEHFKLMN0P 

Difierentials  . .  10  10  10  10  10  10  10  10  10  10  10  10  20    5     6     5     5     6     5 

To  stations  south  of  Grand  Junction  (except  the 
Memphis  Branch),  the  minimum  rates  are  the  same 
as  those  from  Nashville,  except  that  the  rates  from 
Nashville  made  on  combination  do  not  apply  from  Chat- 
tanooga.    The   lowest  combination  is   not   exceeded. 

To  stations  between  Memphis  and  Grenada,  Miss.,  the 
rates  are  made  the  following  differentials  less  than 
the  rates  from  Louisville: 

Classes 1       2      3     456ABCDEHF 

Differentials 15     12     10    8    7    6    4     5    5    5     5     10     10 

The  rates  from  Chattanooga  to  Memphis  are  observed 
as  minima  and  the  lowest  combination  is  observed  as 
maxima.  The  commodity  rates  are  made  5  cents  less 
than  the  rates  from  Louisville. 

From  Knoxville,  Tenn. — The  rates  are  made  the  fol- 
lowing differentials  higher  than  the  rates  from  Chatta- 
nooga : 

Classes 1     23456ABCDEHF 

Differentials 12    976543333336 

From  Birmingham,  Ala.,  and  Group. — To  stations 
between  Cairo  and  Grand  Junction,  the  lowest  com- 
bination prevails. 

To  stations  south  of  Grand  Junction,  the  rates  are 
made  the  following  differentials  less  than  the  rates 
from  Chattanooga,  but  do  not  exceed  the  lowest  com- 
bination. 

Classes 1    2    3    4    6    6ABCDEHF 

Differentials 6544332222224 


270         FREIGHT  KATES :  SOUTHERN  TEKKITURY 

The  commodity  rates  are  made  2  cents  less  than  the 
rates  from  Chattanooga. 

From  Montgomery  and  Selma,  Ala. — The  rates  are 
made  on  the  lowest  combination. 

From  Dalton,  Rome,  and  Atlanta,  Ga. — To  points 
north  of  Grand  Junction,  the  rates  are  made  on  the 
lowest  combination. 

To  points  south  of  Grand  Junction,  the  rates  are 
made  the  same  as  those  from  Chattanooga,  with  the 
lowest  combination  as  maxima. 

From  Athens  and  Augusta,  Ga. — To  points  south  of 
Grand  Junction  and  north  of  Jackson,  Miss.,  the  rates 
are  made  the  following  differentials  higher  than  the 
rates  from  Atlanta: 

Classes 123466ABCDEHF 

Differentials 6    5    4    4     3    3    2    2    2    2    3    4    4 

The  commodity  rates  are  made  2  cents  over  the  rates 
from  Atlanta. 

To  points  south  of  Jackson,  the  rates  are  made  the 
following  differentials  higher  than  the  rates  from 
Atlanta : 

Classes 1     2    3    4    5    6ABCDEHF 

Differentials 3332222222224 

The  commodity  rates  are  made  2  cents  over  the  rates 
from  Atlanta. 

From  Macon,  Ga. — To  stations  south  of  Grand  Junc- 
tion, Tenn.,  and  north  of  Winona,  Miss.,  the  rates  are 
made  the  following  differentials  higher  than  the  rates 
from  Atlanta: 

Classes 123456ABCDEHF 

Differentials 6544332211342 

The  commodity  rates  are  made  1  cent  over  the  rates 
from  Atlanta. 


INTEKIOK  MISSISSIPPI  POINTS  271 

To  points  south  of  Winona  and  north  of  Jackson, 
Miss.,  the  rates  are  made  the  following  differentials 
higher  than  the  rates  from  Atlanta; 

Classes 123456ABCDEHF 

Differentials 33322222]     1222 

The  commodity  rates  are  made  1  cent  over  the  rates 
from  Atlanta. 

To  points  south  of  Jackson,  the  rates  are  the  same 
as  those  from  Atlanta. 

From  Columbus,  Ga. — To  points  south  of  Grand  Junc- 
tion and  north  of  Winona,  the  rates  are  the  same  as 
those  from  Atlanta. 

To  points  south  of  Winona  and  north  of  Jackson, 
the  rates  are  the  same  as  those  from  Atlanta,  but  not 
higher  than  the  rates  from  Chattanooga. 

To  points  south  of  Jackson,  the  rates  are  made  the 
following  differentials  less  than  the  rates  from  Chatta- 
nooga.: 

Classes 1     2     3    4     5     6ABCDEHF 

Differentials 44    3     3222211232 

The  commodity  rates  are  made  1  cent  less  than  the 
rates  from  Chattanooga. 

From  Other  Southeastern  Points. — The  rates  are  ad- 
justed either  in  relation  to  the  foregoing,  or  (more 
generally)   on  the  lowest  combination. 

From  Trunk  Line,  Central  Freight  Association,  and 
Western  Territories. — The  lowest  combination  is,  in 
the  main,  the  basis  of  through  rates. 

(c)  To  Stations  on  the  Mobile  &  Ohio  Railroad 

The  rates  from  St.  Louis  and  Cairo  are  adjusted 
under  the  local  bases  of  the  Mobile  &  Ohio  Railroad,  in 
which  the  main  factors  are  the  mileage  scale  and  com- 
bination. 


272         FREIGHT  RATES :  SOUTHERN  TERRITORY 

From  Louisville,  Ky.,  and  Group. — The  rates  from 
St.  Louis  having  been  fixed,  the  rates  from  Louisville, 
Ky.,  and  group  are  made  the  same  as  the  rates  from 
St.  Louis. 

From  Cincinnati,  Ohio,  and  Group. — To  stations  north 
of  Jackson,  Tenn.,  the  rates  are  made  the  following 
differentials  over  the  rates  from  Louisville: 

Classes 1     2     3     4     6     6ABCDEHFKLMN0 

Differentials 13  11    8765463344656555 

To  stations  south  of  Jackson,  the  rates  are  made  the 
following  differentials  over  the  rates  from  Louisville: 

Classes 1     2     3     4     5    6ABCDEHFKLMN0 

Dieferential9 988765455344    10    22222 

From  Evansville,  Ind.,  Henderson  and  Owenshoro, 
Ky. — The  rates  are  the  same  as  those  from  Louisville, 
except  that  on  Class  B  the  rates  are  2  cents  less  than 
the  rates  from  Louisville. 

From  Paducah,  Ky.,  and  Nashville,  Tenn. — The  mini- 
mum rates  are  the  same  as  those  from  Cairo. 

From  Chattanooga,  Tenn. — To  stations  between  Cairo 
and  Corinth,  Miss.,  the  rates  are  made  the  following 
differentials  higher  than  the  rates  from  Nashville: 

Classes 1     2     3     4     5    6ABCDEHFKLMN0 

Differentials 10  10  10  10  10  10  10  10  10  10  10  10  20    5     5     5     5    5 

To  stations  south  of  Corinth,  the  minimum  rates  are 
the  same  as  those  from  Nashville,  except  that  rates 
from  Nashville  made  on  the  lowest  combination  do  not 
apply  from  Chattanooga.  The  lowest  combination  is 
not  exceeded. 

From  Knoxville,  Tenn. — The  rates  are  made  the  fol- 
lowing differentials  higher  than  the  rates  from  Chatta- 
nooga : 

Classes 1     23456ABCDEHF 

Differentials 12    976543333336 


INTERIOR  MISSISSIPPI  POINTS  273 

Exceptions  are  made  on  various  commodities. 

From  Birmingham,  Ala.,  and  Group. — To  stations  be- 
tween Cairo  and  Corinth,  the  rates  are  made  on  the 
lowest  combination. 

To  stations  south  of  Corinth  (except  the  Montgomery 
Division),  the  rates  are  made  the  following  differentials 
less  than  the  rates  from  Chattanooga,  with  the  lowest 
combination  as  maxima: 

Classes 123456ABCDEHF 

Differentials 6544332222224 

The  commodity  rates  are  made  2  cents  less  than  the 
rates  from  Chattanooga. 

From  Montgomery  and  Selma,  Ala. — The  lowest  com- 
bination or  continuous  locals  prevail. 

From  Dalton,  Rome,  and  Atlanta,  Ga. — To  points 
north  of  Corinth,  the  rates  are  made  on  the  lowest  com- 
bination. 

To  points  south  of  Corinth,  the  rates  are  made  the 
same  as  those  from  Chattanooga,  with  the  lowest  com- 
bination as  maxima. 

From  Athens  and  Augusta,  Ga. — The  rates  are  made 
the  following  differentials  higher  than  the  rates  from 
Atlanta : 

Classes 123456ABCDEHF 

Differentials 5544332222344 

The  commodity  rates  are  made  2  cents  over  the  rates 
from  Atlanta. 

From  Macon,  Ga. — To  points  north  of  Corinth,  the 
rates  are  made  on  the  lowest  combination. 

To  stations  south  of  Corinth  and  north  of  West 
Point,  Miss.,  the  rates  are  made  the  following  differ- 
entials higher  than  the  rates  from  Atlanta: 

Classes 123466ABCDEHF 

Differentials 5     5    44332211842 


274         FKlilGHT  KATES :  SOUTHERN  TERKITORY 

The  commodity  rates  are  made  1  cent  higher  than  the 
rates  from  Atlanta. 

To  points  south  of  West  Point  and  north  of  Meridian, 
the  rates  are  made  the  following  differentials  higher 
than  the  rates  from  Atlanta : 


Classes 1     2    3     4     5    6ABCDEHF 

Differentials 3     3     32222211222 


The  commodity  rates  are  made  1  cent  higher  than  the 
rates  from  Atlanta. 

To  points  south  of  Meridian,  the  rates  are  the  same 
as  those  from  Atlanta. 

From  Columbus,  Ga. — To  points  north  of  Corinth, 
the  lowest  combination  prevails. 

To  points  south  of  Corinth  and  north  of  West  Point, 
the  rates  are  made  the  same  as  those  from  Atlanta. 

To  local  points  south  of  West  Point  and  north  of 
Meridian,  the  rates  are  the  same  as  those  from  Atlanta, 
but  not  higher  than  the  rates  from  Chattanooga. 

To  local  points  south  of  Meridian,  the  rates  are  made 
the   following   differentials    less    than    the    rates    from 


Chattanooga 


Classes 1     2    3     4    5    6ABCDEHF 

Differentials 4     4     3     3    2     2    2    2     1     1     2    3    2 


The  commodity  rates  are  made  1  cent  less  than  the 
rates  from  Chattanooga. 

From  Other  Southeastern  Points. — The  rates  are 
made  either  in  relation  to  the  above  or  on  the  lowest 
combination. 

From  Trunk  Line,  Central  Freight  Association,  and 
Western  Territories. — The  lowest  combination  prevails. 


INTERIOK  MISSISSIPPI  POINTS  275 

(d)  To  Local  Stations  on  the  Yazoo  S  Mississippi 

Valley  Railroad 

The  class  rates  from  Memphis,  Tenn.,  to  local  sta- 
tions on  the  Yazoo  &  Mississippi  Valley  Railroad  are 
made  by  the  use  of  the  Yazoo  &  Mississippi  Valley  local 
distance  scale,  except  to  a  few  points  located  on  what 
is  known  as  the  Riverside  District.  The  rates  to  these 
points  are  somewhat  depressed,  due  to  their  proximity 
to  the  Mississippi  River. 

The  class  rates  from  Memphis  having  been  fixed,  the 
rates  from  Cairo,  111.,  to  local  stations  on  the  Yazoo  & 
Mississippi  Valley  Railroad  are  made  certain  differen- 
tials over  the  rates  from  Memphis,  Tenn.,  and  the  class 
rates  from  other  points  of  origin  are  made  on  the  lowest 
combination. 

For  example,  the  class  rates  from  Memphis  to  Port 
Gibson,  Miss.,  are  as  follows: 

Classes 1 

Memphis  rates 72 

Cairo  differentials 42 

Through  rates 114         97         83         66         54         47 

Classes A  B  C  D  E  F 

C.L.    L.C.L.   C.L.    h.C.li.    C.L.    L.C.I,.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    li.C.I.. 

Memphis  rates^ 24       28       27       35       27       34       21       21       32       39       43       54 

Cairo  differentials 11         9         9         5         9         7         4         4         9         8       17       11 

Through  rates 35       37       36       40       36       41       25       25       41       47       60       65 

The  class  rates  from  St.  Louis,  Mo.,  to  Port  Gibson, 
Miss.,  are  as  follows: 

Classes ." 1  2  3  4  5  6 

St.  Louis  to  Vicksburg 90         75         65         60         40         35 

Vioksburg  to  Port  Gibson 39         34         28         24         21  18 

Through  rates 129       109         93         74         61         63 

Classes A  B  C  D  E  F 

C.Ii.    L.C.I..    C.L.     L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L. 

St.  Louis  to  Vicksburg    25       25  25       25       20       20       28       28       45       45 

Vicksburg  to  Port 

Gibson 14       16  16       21       10       10       18       24       25       30 

Through  rates 39       41       41»      45«      41       46       30       30       46       62       70       78 

^Arbitrarilv  fixed. 


2 

3 

4 

5 

6 

61 

51 

43 

36 

32 

36 

32 

23 

IS 

15 

276        PKEIGHT  RATES :  SOUTHERN  TERRITORY 

At  the  more  important  or  competitive  points,  however, 
the  mileage  basis  is  disregarded  and,  where  practical, 
the  water-line  rates  are  met  or  equalized  as  far  as 
possible.  This  practice  is  eraploj^^ed  generally  through- 
out the  South. 

It  should  be  understood,  however,  that  there  are  many 
instances  where,  considering  the  distance  of  the  haul  and 
the  nature  of  the  traffic,  the  rail  carriers  would  not  be 
warranted  in  even  attempting  to  meet  these  low  rates. 


CHAPTER  XIX 

RATES  TO  INTERIOR  MISSISSIPPI  VAI<LEY  POINTS— 

Contiiiaed 

1.   To  Jackson  and  Meridian,  Miss. 
(a)   From  Seaboard  Territory 

The  exceptionally  low  rates  made  by  the  water  car- 
riers from  eastern  points  to  the  South  Atlantic  and 
Gulf  ports  are  given  much  emphasis  throughout  the  re- 
port of  the  Interstate  Commerce  Commission  dealing 
with  the  rate  adjustments  to  these  ports  from  the 
various  territories. 

The  influence  of  this  competition,  however,  is  felt  at 
interior  points  located  away  from  navigable  streams 
or  bodies  of  water. 

To  such  points  through  rates  are  made  by  the  water 
carriers  by  combining  their  rates  to  the  ports  with 
those  of  the  carriers  from  the  ports,  the  combination  of 
local  rates  in  many  instances  being  sufficient  to  secure 
the  traffic.  Where  the  combination  rates  are  not  suffi- 
cient to  secure  the  traffic,  rates  may  be  made  certain 
differentials  under  the  rates  which  the  rail  lines  may  fix. 

Taking  as  an  illustration  the  rates  from  New  York 
to  Meridian,  Miss.,  the  rates  via  the  various  routes  are 
as  follows: 

Classes 1      23456ABCDEHF 

All-rail  rates 114  98  86  73  60  49  41  48  40  39  58  68  78 

Rail-and-water  rates.  .  114  98  86  73  60  49  41  48  40  39  58  68  78 

Rates  via  Gulf 96  84  75  65  54  45  37  44  36  35  64  69  74 

277 


278         FREIGHT  RATES :  SOUTHERN  TERRITORY 

Note  that  the  all-rail  rates,  which  apply  via  the  Vir- 
ginia Gateways  and  Ohio  Eiver  Crossings,  are  the  same 
as  the  rates  via  the  rail-and-water  routes  through  the 
South  Atlantic  Ports. 

The  rates  via  the  Gulf  lines  (the  Morgan  Line  and 
the  Mallory  Line)  indicate  that  they  are  the  following 
differentials  less  than  the  rates  via  the  other  routes : 

Classes 1       2      3     456ABCDEHF 

Differentials 18     14     11     8644444484 

The  Gulf  lines  are  conceded  this  scale  of  differentials 
by  the  rail  or  rail-and-water  lines  on  traffic  destined  to 
all  common  points  in  Mississippi  on  and  south  of  a  line 
drawn  through  Vicksburg,  Jackson,  and  Meridian.  To 
local  points  the  rates  are  made  on  the  basis  of  the 
lowest  combination  through  the  Gulf  port  to  a  common 
point  plus  the  local  rate  from  the  common  point. 

To  points  north  of  this  line  the  rates  are  made  on  the 
lowest  available  combination,  which  is  usually  the 
water  rate  to  the  port  plus  the  rail-line  local  rate  from 
the  port.  North  of  this  line  is  neutral  territory,  and  the 
various  routes,  except  for  some  spasmodic  competi- 
tion by  independent  lines,  meet  on  a  common  footing. 

From  the  Eastern  Cities  and  interior  eastern  points, 
the  rates  are  the  same  via  the  all-rail  and  the  rail- 
and-water  routes.  The  basis  to  Meridian  from  New 
York  is  the  same  as  that  to  Selma,  Ala.,  via  rail-and- 
water.  From  Philadelphia,  Baltimore,  and  points  tak- 
ing the  same  rates,  the  rates  are  the  Trunk  Line  dif- 
ferentials below  the  rates  from  New  York,  using  as 
minimum  rates  from  Philadelphia  and  Baltimore,  re- 
spectively, the  corresponding  rates  to  Anniston.  From 
the  Virginia  Cities,  also,  the  basis  is  the  same  as  that 
to  Selma.  However,  the  existing  rates  from  the  East 
to  Meridian  are  higher  than  on  the  basis  given,  as  no 


INTERIOR  MISSISSIPPI  POINTS  279 

change  was  made  in  the  rates  to  Meridian  when  the 
general  reductions  to  the  southeastern  common  points 
were  made  in  1904. 

The  class  rates  from  eastern  seaboard  and  interior 
eastern  points  and  from  the  Virginia  Cities  to  Jackson 
are  fixed  figures  checked  in  by  the  Jackson  lines,  gov- 
erned somewhat  by  the  competition  found  at  Vicksburg 
and  at  Meridian.  The  lowest  combination  was  not 
exceeded,  and  this  is  the  basis  for  the  commodity  rates 
at  the  present  time. 

The  basis  from  the  Buft'alo-Pittsburgh-Wheeling-Ash- 
land  zone  to  both  Jackson  and  Meridian  is  the  same  as 
that  observed  generally  to  the  southeast. 

(6)    From  Ohio  River  Crossings 

In  the  pages  following  dealing  with  the  basis  for 
rates  from  Ohio  River  Crossings  and  points  in  Western 
Trunk  Line  and  Central  Freight  Association  territories, 
the  present  scale  of  rates  and  basis  has  been  used.  The 
territory  is  grouped  in  the  following  manner. 

St.  Louis  Group. — St.  Louis,  Mo.,  rates  apply  from 
St.  Louis,  Mo.,  East  St.  Louis  and  Belleville,  111.,  Louis- 
ville, Ky.,  and  Jeffersonville  and  New  Albany,  Ind. 

Evansville  Group. — Evansville,  Ind.,  rates  apply  from 
Evansville,  Ind.,  and  Owensboro  and  Henderson,  Ky. 

Cincinnati  Group. — Cincinnati,  Ohio,  rates  apply  from 
Cincinnati,  Ohio,  Covington,  Newport,  and  Lexington, 
Ky.,  and  Aurora  and  Lawrenceburg,  Ind. 

Illinois  Central  Railroad  Group. — Illinois  Central 
Railroad  group  rates  apply  from  stations  on  the  Illi- 
nois Central  Railroad  from  Carbondale,  111.,  to  Villa 
Ridge,  111.,  inclusive,  and  from  Carterville,  111.,  to 
Round  Knob,  111.,  inclusive. 

Chicago  Group. — Chicago,  111.,   rates  apply  from   all 


280        b^RElGHT  KATES :  SOUTHERN  TERRITORY 

that  territory  beginning  at  Chicago  and  thence  via  the 
west  bank  of  Lake  Michigan  to  Whiting,  Ind.,  inclusive ; 
thence  via  the  Chicago,  Indiana  &  Southern  Railroad 
to  but  not  including  Schneider,  Ind.;  thence  north  of 
the  Chicago,  Indiana  &  Southern  Railroad  to  and  in- 
cluding Wheatfield;  thence  via  the  Chicago  &  Eastern 
Illinois  Railroad  to  LaCrosse,  Ind.,  inclusive;  thence  on 
and  west  of  the  Chicago  &  Eastern  Illinois  Railroad 
to  Percy  Junction;  thence  via  an  imaginary  line  to  a 
point  just  north  of  Kentland  and  Effner;  thence  north 
of  the  line  of  the  Toledo,  Peoria  &  Western  Railway 
to  a  point  just  north  of  Peoria;  thence  north  of  the  line 
of  the  Chicago,  Burlington  &  Quincy  Railroad  and  north 
of  Yates  City,  Galesburg,  and  Monmouth,  to  and  in- 
cluding Burlington ;  thence  on  and  east  of  the  west  bank 
of  the  Mississippi  River  to  Sabula  Junction;  thence  on 
and  south  of  the  Chicago,  Milwaukee  &  St.  Paul  Rail- 
way to  and  including  Freeport,  111.;  and  thence  on 
and  south  of  the  Chicago  &  North  Western  Railway, 
through  Rockford,  Belvidere,  and  Elgin,  to  Chicago, 
inclusive. 

Milwaukee  Group. — Milwaukee,  Wis.,  rates  apply 
from  all  that  territory  beginning  at  Milwaukee,  and 
thence  on  and  south  of  the  line  of  the  Chicago,  Mil- 
waulcee  &  St.  Paul  Railway,  through  Brookfield  Junc- 
tion; thence  to  and  including  Waukesha;  thence  on 
and  east  of  the  line  of  the  Wisconsin  Central  Railway 
to  and  including  Leighton,  111.;  thence  on  and  east 
of  the  line  of  the  Elgin,  Joliet  &  Eastern  Railway  but 
not  including  Spald^vin,  111.;  thence  north  of  the  line 
of  the  Chicago,  Milwaukee  &  St.  Paul  Railway  to  but 
not  including  Chicago,  111.;  thence  via  the  west  bank 
of  Lake  Michigan  to  Milwaukee,  inclusive,  including 
points  on  and  south  of  the  line  of  the  Illinois  Central 
Railroad    from   Dubuque,   Iowa,    to   but   not   including 


INTERIOR  MISSISSIPPI  POINTS  281 

Freeport,  111.,  and  points  on  and  east  of  the  Chicago, 
Milwaukee  &  St.  Paul  Railway  from  Dubuque  to  but  not 
including  Sabula;  also  points  on  the  Illinois  Central 
Railroad  from  Dodgeville  and  Madison,  Wis.,  to  but 
not  including  Freeport,  111. 

Peoria  Group. — Peoria,  111.,  rates  apply  from  all  that 
territory  including  west  bank  Mississippi  River  points 
from  Burlington,  Iowa,  to  Hannibal,  Mo.,  inclusive; 
thence  north  on  the  Wabash  Railroad  to  and  including 
Springfield,  111.;  thence  north  of  the  Cincinnati,  Hamil- 
ton &  Dayton  Railway  to  and  including  Decatur;  thence 
on  and  east  of  the  Illinois  Central  Railroad  to  but  not 
including  Sullivan,  111.;  thence  north  of  the  Chicago  & 
Eastern  Illinois  Railroad  to  but  not  including  Tuscola; 
thence  north  of  the  Cincinnati,  Hamilton  &  Dayton  Rail- 
way to  but  not  including  West  Melcher;  thence  on  and 
west  of  the  Chicago  «&  Eastern  Illinois  Railroad  to  and 
including  Goodland,  Ind. ;  and  thence  on  and  south  of 
the  Chicago,  Burlington  &  Quincy  Railroad,  including 
Yates  City  and  Monmouth,  to  Burlington,  Iowa,  inclu- 
sive. 

(c)  From  St.  Louis,  Mo.,   Ohio   River   Crossings,   and 

Related  Points 

The  basis  for  the  class  rates  to  Jackson  and  Meridian, 
Miss.,  are  the  class  rates  from  St.  Louis  to  Meridian, 
the  Meridian  rates  having  been  applied  to  Jackson,  for 
competitive  reasons.  The  rates  from  St.  Louis  reflect 
the  competition  down  the  Mississippi  River  to  Vicks- 
burg  and  thence  via  rail  to  Jackson,  the  rates  to  Merid- 
ian being  made  no  greater  than  those  to  Jackson. 
Some  of  the  rates,  however,  particularly  on  commodi- 
ties, have  been  adjusted  to  meet  market  competitive 
conditions. 


282       FREIGHT  RATES:  SOUTHERN  TERRITORY 

The  class  rates  from  St.  Louis  to  Jackson  and 
Meridian  are  as  follows: 

Classes 123456AB      CDEHF 

Rates 98  84  70  59  49  43  35  35J  27  25  34  55  54 

After  fixing  the  class  rates  from  St.  Louis,  the  St. 
Louis  basis  is  applied  from  Louisville,  Ky.  The  class 
rates  from  other  points  of  origin  are  made  the  differen- 
tials shown  in  Table  64  over  or  under  the  class  rates 
from  St.  Louis. 

TABLE  64 

DiFFEKENTIALS    USED    IN     CoNSTEUCTING    ClASS    RaTES    TO 

Jackson  and  Meridian,  Miss. 


Feom  Groups 

Differentials  in  Cents  per 
Except  as  Noted 

100  Pounds 

Remarks 

1     2 

3 

4 

5 

Classes' 
6    A    B 

C 

D 

E 

H   F2 

Memphis 

25  21 

15  12 

15  12 

3     3 

18 

10 

10 

3 

15 
8 
8 
2 

12 
7 
7 
2 

10 
6 
6 
2 

7 
4 
4 
2 

7 
5 
5 
2 

7 
5 
5 
2i 

7 
5 
5 
2 

7 
5 
5 
2 

7  18 
5  10 
5  10 
2     5 

Nashville' 

Below  St.  Louis 

Cairo 

rates 

Evansville 

8     8 
14  11 

8     8 
20  15 
26  20 

8 

9 

8 

10 

14 

7 
6 

4 

8 
11 

6 
5 
4 

7 
9 

5 
5 
4 
6 

8 

4 
4 
3 

6 

8 

2 
4 
3 

6 
8 

2 
3 
2 
6 

8 

2 
3 
2 
6 

8 

4 
4 
3 

5 

7 

4     4 
6     6 
4     4 
8   12 
11    16 

Peoria 

Over  St.  Louis 

Springfield 

rates 

Chicago   

Milwaukee 

'Governed  by  the  Southern  Classification. 

«Per  barrel. 

'But  not  less  per  mile  than  from  Louisville 


2.    Commodity  Adjustment 


The  relative  adjustment  in  connection  with  the  com- 
modity rates  from  the  Ohio  River  Crossings  and  Nash- 
ville and  from  Chicago,  Milwaukee,  Peoria,  and  Spring- 
field territories  is  as  described  concerning  the  com- 
modity rates  to  New  Orleans  and  group. 


INTERIOR  MISSISSIPPI  POINTS  283 

(a)   From  Central  Freight  Association  Territory 

From  Central  Freight  Association  Territory,  the 
rates  are  generally  made  on  the  lowest  combination. 

(b)  From  Southeastern  Territory 

From  Chattanooga,  Tenn. — To  Jackson,  Miss.,  the 
rates  are  made  not  less  than  the  rates  from  Nashville. 

To  Meridian,  Miss,  the  rates  are  made  the  following 
differentials  under  the  rates  from  Nashville: 

Classes 123456ABCDEHF 

Diflferentials 6544332222422 

From  Birmingham,  Ala.,  and  Group. — The  rates  are 
made  the  following  differentials  under  the  rates  from 
Chattanooga : 

Classes 1     2    3    4    5    6    ABCDEHF 

Differentials 6544332222224 

The  rates  to  Meridian  do  not  exceed  the  local  rates  of 
the  Alabama  Great  Southern  Railroad. 

From  Knoxville,  Tenn. — The  rates  are  made  the 
following  differentials  over  the  rates  from  Chatta- 
nooga : 

Classes 1      2     3    4    5    6    ABCDEHF 

Differentials 12    976543333336 

From  Montgomery  and  Selma,  Ala. — The  rates  are 
made  the  same  as  the  rates  from  Birmingham. 

From  the  Gadsden-Anniston,  Ala.,  Group. — The  rates 
are  made  the  same  as  the  rates  from  Chattanooga. 

From  Rome  and  Dalton,  Ga. — The  rates  are  made  the 
same  as  the  rates  from  Chattanooga. 

From  Atlanta,  Ga. — The  rates  are  made  the  same  as 
the    rates   from    Chattanooga,    hut    do    not   exceed   the 


284        FREIGHT  RATES :  SOUTHERN  TERRITORY 

lowest  combination  or  the  local  rates  of  a  continuous 
line. 

From  Augusta  and  Athens,  Ga. — The  rates  are  made 
the  following  differentials  higher  than  the  rates  from 
Atlanta : 

Classes 123456ABCDEHF 

Differentials 5644332222344 

From  Macon,  Ga. — The  rates  are  made  the  same  as 
those  from  Atlanta. 

From  Milledgeville,  Ga.,  and  Group. — The  rates  are 
made  the  same  as  those  from  Macon. 

From  Columbus,  Ga. — The  rates  are  made  the  fol- 
lowing differentials  less  than  the  rates  from  Chatta- 
nooga : 

Classes 1     2    3    4    6    6ABCDEHF 

Differentials 4    4    3    3    2    2    2    2     1     1     2    3    2 

From  other  competitive  points  and  from  local  points 
in  Southeastern  Territory  the  basis  is  as  described  to 
junctions  in  interior  Mississippi  Valley  Territory. 

3.    To    Hattiesbukg,    Laueel,    Lumberton,    Newton, 
Ellisvillb,  and  Enterprise,  Miss. 

The  class  and  commodity  rates  to  Hattiesburg,  Laurel, 
Lumberton,  Newton,  Ellisville,  and  Enterprise,  Miss., 
are  made  the  following  differentials  higher  than  the 
rates  to  Jackson  and  Meridian,  Miss.,  observing  the 
actual  combination  as  maximum  from  each  of  the  orig- 
inating points. 

Classes 128456ABC  D  EH         F 

O.L.    L.C.L.  C.Ii.    l-.O.l/. 

DiffurentiftlB.     20     17      15      12       9     fi     .I        5       12       5         10     12     IJ      11        34 


INTERIOR  MISSISSIPPI  POINTS  285 


Commodities  Differentiami 

Cement  and  plaster,  C.  L 5 

Fertilizers,  C.  L 5 

Flour,  in  sacks,  C.  L 6 J 

Lime,  C.  L 5 

Lumber,  C.  L 5 

Ore,  ground  iron,  C.  L 5 

Paint,  mineral,  C.  L 5 

Railroad  track  material,*  C.  L 100 

SaU,  C.  L 6 

Slate  roofing,  C.  L 5 

Stone,  C.  L 5 

For  example,  the  class  and  commodity  rates  from 
St.  Louis  to  Hattiesburg,  Laurel,  Lumberton,  Newton, 
Ellisville,  and  Enterprise  are  made  as  follows: 

Classes 1       2       3       4       5       6       ABC  D  EH  F 

Rates,     from       St.  ^.l.   l.c.l.  c.l.   uc.l. 

Louis  to  Jackson 

and  Meridian  ...   98     84     70     59     49     43     35     35i  27     25       25     34     65     54       54 
Differentials     over 

Jackson        and 

Meridian 20     17     15     12       9       6       6       5     12       6       10     12     12     11       24 

Through  rates 118  101     85     71     58     49     40     40J  39     30     35       46     67     65       77 

Commodities Flour,  in  Railroad  Track 

Sacks  Lime              Material 
Rates   from   St.    Louis   to   Jackson   and 

Meridian 21  19                  $4.48 

Differentials  over  Jackson  and  Meridian           5 J  5                    1.00 


Through  rates 26i  24  $5.48 


I  P«r  ton,  2,240  poundj. 


CHAPTER  XX 

RATES  TO  INTERIOR  MISSISSIPPI  VALIJBY  POINTS 

— Continned 

1.    From   Ohio  and  Mississippi  River   Crossings 
(a)  To  Union  City,  Tenn. 

Cairo,  111.,  is  the  base  point  for  the  class  rates  to  Union 
City,  Tenn.,  the  rates  from  Cairo  being  as  follows : 

Classes.  .1      2      3      4      5      6ABCDEHF 
Rates. ...   38     32    27    22    20     18     15    22     16     12     19     19     32 

The  class  rates  from  Cairo  having  been  fixed,  the 
class  rates  from  other  points  of  origin  to  Union  City 
are  made  by  adding  the  differentials  set  forth  in  Table 
65  to  the  class  rates  from  Cairo. 

(h)  To  Martin  and  Gihhs,  Tenn. 

The  class  rates  to  Martin  and  Gibbs,  Tenn.,  from  Ohio 
River  Crossings,  Mississippi  River  Crossings,  and  other 
points  of  origin,  except  from  Memphis  and  Nashville, 
Tenn.,  and  the  Illinois  Central  Railroad  group,  are 
made  the  following  differentials  higher  than  the  class 
rates  to  Union  City,  Tenn. : 

Classes 123456ABCDEHF 

Cairo  to  Union  City. .  .  38  32  27  22  20  18  15  22  16  12  19  19  32 
Differentials  over  Union 

City  rates 3332211111112 

Through  rates  from 
Cairo  to  Martin  and 
Gibbs 41  35  30  24  22  19  16  23  17  13  20  20  34 

286 


INTEEIOK  Mlt^SlSSIPPI  POINTS  287 

TABLE  65 

Differentials  Used  in  Constructing  Class  Rates  to 

Union  City,  Tenn. 


Differentials  in  Cents 

PER 

100  Pounds 

Except  as 

Noted 

From  Groups 

Classes* 

1 

2 

3 

4 

5 

6 

A 

B 

C 

D 

E 

H 

F» 

MeiDDhis 

8 
8 

8 
8 

8 
8 

7 

7 

5 
5 

3 
3 

2 
2 

2 
2 

2 
2 

2 
2 

2 
2 

2 
2 

4 

Nashville 

4 

St.  Louis-Louisville 

28 

25 

20 

15 

8 

6 

8 

8 

7 

5 

7 

13 

14 

Evansville 

25 

22 

17 

13 

6 

4 

6 

6 

5 

3 

5 

11 

10 

Cincinnati 

41 

36 

28 

22 

14 

11 

12 

14 

10 

8 

11 

17 

20 

Pana 

38 

31 

24 

19 

15 

13 

10 

10 

9 

8 

12 

15 

18 

Peoria 

42 

35 

28 

22 

15 

13 

12 

12 

11 

10 

12 

17 

22 

Indianapolis 

42 

35 

28 

22 

15 

13 

12 

12 

11 

10 

12 

17 

22 

Chicago 

45 
6 

37 
5 

31 
4 

24 
3 

19 
2 

16 
2 

14 
2 

16 
2 

13 
2 

11 
2 

14 
2 

17 

2 

26 

Milwaukee' 

4 

'Governed  by  the  Southern  Classification. 

*Per  barrel. 

•Differentials  over  the  rates  from  Chicago,  111. 

The  same  class  rates  apply  from  Nashville  to  Martin 
and  Gibbs  as  apply  from  Nashville  to  Union  City. 

The  same  class  rates  apply  from  Memphis  to  Martin 
and  Gibbs  as  apply  from  Memphis  to  Union  City. 

The  class  rates  from  the  Illinois  Central  Railroad 
group  to  Martin  and  Gibbs  are  made  the  following  dif- 
ferentials higher  than  the  Cairo,  111.,  class  rates: 

Classes 1       2      3     456ABCDEHF 

Differentials 17     15     13    9    7     5    5    2    4    4     5    6    8 

(c)   To  Rives,  Tenn. 

Except  from  Nashville,  Tenn.,  the  same  basis  applies 
to  Rives,  Tenn.,  as  that  shown  under  the  Martin  and 
Gibbs  heading. 

The  class  rates  from  Nashville  to  Rives  are  made  by 
applying  the  same  differentials  over  the  rates  to  Union 


288         FREIGHT  RATES :  SOUTHERN  TERRITORY 

City,  Tenn.,  as  those  used  in  making  the  class  rates 
from  Ohio  River  Crossings  to  Union  City,  Tenn. 

Classes 1234     56ABCDEHF 

Rates  from  Nashville  to 

Union  City 46  40  35  29  25  21  17  24  18  14  21  21  36 

Differentials  over  rates 

to  Union  City 3332211111112 

Through     rates     from 

Nashville  to  Rives. . .  49  43  38  31  27  22  18  25  19  15  22  22  38 

[d)  To  Paris,  Tenn. 

The  class  rates  from  Memphis  to  Paris  are  arbi- 
trarily fixed  at  the  foUomng  figures: 

Classes 123456ABCDEHF 

Rates 50  43  38  32  27  24  22  27  21  15  24  24  42 

The  class  rates  from  Nashville  to  Paris  are  arbi- 
trarily fixed  at  the  following  figures: 

Classes 123456ABCDEHF 

Rates 45  38  33  27  24  21  17  24  18  14  21  21  36 

The  rates  from  Memphis  being  lixed,  the  rates  from 
Cairo,  111.,  are  made  the  same.  From  Ohio  River 
Crossings,  except  Cairo,  111.,  and  from  other  points  ex- 
cept Memphis  and  Nashville,  Tenn.,  the  rates  are  made 
by  adding  the  same  differentials  over  the  Cairo,  111., 
rates  as  shown  in  Table  65  as  applying  to  Union  City, 
Tenn. 

{e)  To  Milan  and  Humboldt,  Tenn. 

Cairo,  111.,  is  the  base  point  for  the  class  rates  to 
Milan  and  Humboldt,  Tenn.,  the  class  rates  from  that 
point  being  as  follows: 

Classes 123456ABCDEHF 

Rates 60  42  37  31  25  23  19  26  17  13  19  21  34 


INTEEIOE  MISSISSIPPI  POINTS  289 

The  class  rates  from  Cairo  having  been  fixed,  the 

class  rates  to  Milan  and  Humboldt  from  other  points  of 
origin,  except  from  Nashville  and  Memphis,  Tenn.,  and 
the  Illinois  Central  Railroad  group,  are  made  by 
applying  the  same  differentials  over  the  rates  from 
Cairo  as  those  shown  in  Table  65. 

The  class  rates  from  Nashville  to  Milan  and  Hum- 
boldt are  fixed  arbitrarily  at  the  following  figures: 

Classes 123456ABCDEHF 

Rates 65  56  49  42  31  29  29  33  22  17  25  28  44 

The  class  rates  from  Memphis  to  Milan  and  Humboldt 
are  fixed  arbitrarily  at  the  following  figures: 

Classes 123456ABCDEHF 

Rates 46  40  35  29  25  21  17  24  18  14  21  21  36 

The  class  rates  from  the  Illinois  Central  Railroad 
group  to  Milan  and  Humboldt  are  made  the  following 
differentials  higher  than  the  Cairo  class  rates: 

Classes 123466ABCDEHF 

Differentials 17  15  13   9    7    5    5    2    4    4    6    5    8 

(/)  To  Jackson  and  Bemis,  Tenn. 

Cairo,  111.,  being  the  base  point,  the  class  rates  from 
that  point  to  Jackson  and  Bemis,  Tenn.,  are  established 
as  follows: 

Classes 123456ABC     DEHF 

Rates 58  49  42  35  27  27  26  29  18J  15  22  24  37 

The  class  rates  from  Memphis,  Tenn.,  to  Jackson 
and  Bemis  are  fixed  arbitrarily  at  the  follomng  figures : 

Classes 123456ABC     DEHF 

Rates 48  42  36  30  24  22  22  25  18i  15  22  22  37 

The  class  rates  from  other  points  of  origin  to  Jack- 
son and  Bemis  are  made  by  adding  the  differentials  set 
forth  in  Table  66  to  the  class  rates  from  Cairo. 


290         FREIGHT  RATES :  SOUTHERN  TERRITORY 

TABLE  66 

DiFFEBENTIALS    UsED    IN    CONSTRUCTING    ClASS    RaTES    TO 

Jackson  and  Bemis,  Tenn. 


From  Groups 

Differentials  in  Cents  per 
Except  as  Noted 

100  Pounds 

1     2 

Classes' 
3    4     5     6    A    B    C 

D 

E    II    F« 

Nashville 

6    5 

28  25 
25  22 

41  36 
38  31 

42  35 
42  35 
45  37 
17  15 

6     5 

4    3     3     2     2    2     U 
20  15     8    6    8    8    7 
17  13     6     4     6     6     5 
28  22  14  11  12  14  10 
24  19  15  13  10  10     9 
30  23  17  15  12  12-  11 

30  23  17  15  12  12  11 

31  24  19  16  14  16  13 
13     9     7     5     5     2     4 

4    3     2    2    2    2    2 

1 
5 
3 

8 

8 

10 

10 

11 

4 

2 

2     2     3 

St.  Louis-Louisville 

7  13  14 

Evansville 

5  11  10 

Cincinnati 

11  17  20 

Pana 

12  15  18 

Peoria 

13  17  22 

Indianapolis 

13  17  22 

Chicago 

14  17  26 

Illinois  Central  Railroad 

Milwaukee* 

5     5    8 
2    2    4 

'Governed  by  the  Southern  Classification. 

-Per  barrel. 

^Differentials  over  the  rates  from  Chicago,  111. 

{g)  To  Somerville,  Tenn. 

Cairo,  111.,  being  the  base  point,  the  class  rates  from 
that  point  to  Somerville,  Tenn.,  are  fixed  at  the  follow- 
ing figures: 

Classes 123456ABCDEHF 

Rates 64  54  46  38  30  29  23  27  20  16  24  26  40 

The  class  rates  from  Cairo  ha\'ing  been  fixed,  the 
class  rates  to  Somerville  from  other  points  of  origin, 
except  from  Nashville  and  Memphis,  Tenn.,  are  made  by 
adding  the  same  differentials  to  the  class  rates  from 
Cairo  as  those  shown  in  Table  66. 

The  class  rates  from  Nashville  to  Somerville  are  ar 
bitrarily  fixed  the  same  as  those  from  Cairo. 

The  class  rates  from  Memphis  to  Somerville  are  arbi 
trarily  fixed  at  the  following  figures : 

Classes 1    2    3456ABCDEHF 

Rates 36  31  26  22  19  18  12  17  15  11  18  18  22 


INTERIOR  MISSISSIPPI  POINTS  291 

(h)  To  Grand  Junction,  Tenn. 

Cairo,  111.,  being  the  base  point,  the  class  rates  from 
that  point  to  Grand  Junction,  Tenn.,  are  fixed  at  the 
following  figures: 

Classes 1         2         3         4         fi         6 

Rates 62       64       44       38       32       27 

Classes A  B  C  D  EH  F 

CL.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.  C.L.    L.C.L. 

Rates 26       28       29       31       18i     21       17       19       29       34       37       42 

The  class  rates  from  Cairo  having  been  fixed,  the 
class  rates  to  Grand  Junction  from  other  points  of  ori- 
gin, except  from  Memphis,  Tenn.,  are  made  by  adding 
the  differentials  set  forth  in  Table  67  to  the  class  rates 
from  Cairo. 

'     TABLE  67 

Differentials  Used  in   Constructing  Cl.\ss  Rates  to 
Grand  Junction,  Tenn. 


From  Groups 

Differentials  in  Cents  per  100  Pounds 
Except  as  Noted 

Classes* 
123456ABC     DEHF» 

Nashville    

11     9864333     U     1353 

St.  Louis-Louisville 

34  29  24  18  13  11  10  10    7      5  10  17  14 

EvaiiRville      

34  29  24  18  13  11  10    8    5      3  10  17  10 

CJiriRinnati              

43  37  32  25  19  16  14  15  12      8  14  21  24 

Pana 

38  31  24  19  15  13  10  10    9      8  12  15  18 

Peoria 

42  35  30  23  17  15  12  12  11     10  13  17  22 

IndiananoUs 

42  35  30  23  17  15  12  12  11     10  13  17  22 

Chicago 

45  37  31  24  19  16  14  16  13     11  14  17  26 

Illinois  Central  Raib-oad 

Milwaukee'   

17  15  13    975524      4558 
654322222      2224 

'Governed  by  the  Southern  Classification. 

'Per  barrel. 

•Differentials  over  the  rates  from  Chicago,  III. 


292       FBIIGHT  HATBS :  80UTHBEN  TEKEITOBY 

The  class  rates  from  Memphis  to  Grand  Junction  are 
arbitrarily  fixed  at  the  following  figures: 

Classes 123456ABCDEHF 

Hates 41  36  31  26  21  18  18  21  14  12  21  26  28 

(t)  To  Corinth  and  Ruslor,  Miss. 

The  base  point  for  the  class  rates  to  Corinth  and  Rus- 
lor, Miss.,  is  Cairo,  111.,  from  which  point  the  class  rates 
are  established  as  follows: 

Classes 123456ABC     DEHF 

Rates 62  54  44  38  32  27  26  30  19i  19  29  34  39 

The  class  rates  from  Cairo  to  Corinth  and  Ruslor 
having  been  fixed,  the  class  rates  from  other  points  of 
origin,  except  from  Memphis,  Tenn.,  are  made  by  add- 
ing the  same  differentials  to  the  class  rates  from  Cairo 
as  those  shown  in  Table  67. 

The  class  rates  from  Memphis  to  Corinth  and  Ruslor 
are  made  by  using  the  Southern  Railway  (Memphis 
Division)  local  station  basis  on  Classes  1  to  6,  inclusive, 
and  A,  D,  E,  and  H.  The  rates  on  other  classes  are 
fixed  arbitrarily. 

The  class  rates  from  Memphis  to  Corinth  and  Ruslor 
are  as  follows: 

Classes 123456ABCDEHF 

Rates 45  40  35  30  25  20  20  23  14  14  25  30  28 

{j)  To  Holly  Springs,  Miss. 

The  class  rates  to  Holly  Springs,  Miss.,  are  based  on 
Cairo,  111.,  from  which  point  the  class  rates  are  fixed  as 
follows : 

ClasMW 13         3         4         5         8 

Rates M      56      45      89      32      28 

Qmm ABC  DEHF 

C.t.    L.C.L  O.L.    L-CL.   C.L.    L.C.L.  C.I..    UCfc. 

RatM 26       28       29       18t     21        17       20       S9       S4       87       42 


INTEBIOR  MISSISSIPPI  POINTS 


29S 


The  class  rates  from  Cairo  to  Holly  Springs  having 
been  fixed,  the  class  rates  from  other  points  of  origin, 
except  from  Memphis,  Tenn.,  are  made  by  adding  the 
same  differentials  to  the  class  rates  from  Cairo  as  those 
shown  in  Table  67. 

The  class  rates  from  Memphis  to  Holly  Springs  are 
fixed  arbitrarily  as  follows: 

Clftssef 1         2         3         4         5         6 

Rates 35       32       26       23       20       18 

Classes ABC  D  E        H  F 

C.t,.    L.C.L.    C.L.    L.C.L.  C.L.    L.C.I.. 

Rates 17       19       lOJ     13       12       13       20       23       21       28 

(k)  To  Tupelo,  Miss. 

The  class  rates  to  Tupelo,  Miss.,  are  based  on  the 
class  rates  from  Memphis,  Tenn.,  from  which  point  the 
rates  are  established  as  follows: 

Classes 123456ABC     DEHF 

Rates 60  50  40  35  28  23  22  26  15i  15  23  29  31 

TABLE  68 

Differentials  Used  in  Constructing  Class  Rates  to 

Tupelo,  Miss. 


IP     Fbom  Gbocfs 

DirFEBENTIALB  IN   CenTB   PER    100   P0DND8 

Except  as  Noted 

REUABXa 

1 

2 

3 

4 

5 

Classes' 
6    A    B 

C 

D 

E 

H 

F2 

Cairo 

8 

7 

6 

6 

6 

6 

4 

4 

4 

4 

7 

9 

8 

Over  Memphis 

^     rates 

Nashville 

11 
34 
43 
34 
42 
38 
42 
45 

9 
29 
37 
29 
35 
31 
35 
37 

8 
24 
32 
24 
30 
24 
30 
31 

6 

18 
25 
18 
23 
19 
23 
24 

4 
13 
19 
13 
17 
15 
17 
19 

3 

11 
16 
11 
15 
13 
15 
16 

3 

10 
14 
10 
12 
10 
12 
14 

3 

8 
15 
10 
12 
10 
12 
16 

H 
5 

12 

7 
10 

9 
10 
13 

1 

3 

8 

5 

10 

8 

10 

11 

3 

10 
14 
10 
13 
12 
13 
14 

5 

17 
21 
17 
17 
15 
17 
17 

3 

10 
24 
14 
22 
18 
22 
26 

Evansville 

Cin''innati 

St    I.ouis>LouisviIle. . . . 
Peoria 

Over  Cairo 
rates 

Pana 

Indianapolis 

Chicago 

Milwaukee 

6 

5 

4 

3 

2 

2 

2 

2 

2 

2 

2 

2 

4 

Over  Chicago 
rates 

>Gover&ed  by  the  Southern  Claaaifieatiotu 
•Par  barrel. 


294        FREIGHT  RATES :  SOUTHERN  TERRITORY 

The  class  rates  from  Memphis  to  Tupelo  having  been 
fixed,  the  class  rates  from  other  points  of  origin  are 
made  on  the  differential  basis  set  forth  in  Table  68. 

(l)  To  New  Albany,  Miss. 

The  class  rates  to  New  Albany,  Miss.,  are  the  same 
as  the  class  rates  to  Tupelo,  Miss.,  from  all  points  of 
origin,  except  from  Memphis,  Tenn.,  from  which  the 
class  rates  are  fixed  arbitrarily  as  follows: 

Classes 123456ABCDEHF 

Rates 54  45  34  31  27  21  19  23  15  14  22  27  30 

(m)  To  Aclcerman,  Miss. 

The  base  point  for  the  class  rates  to  Ackerman,  Miss., 
is  Cairo,  111.,  from  which  point  the  class  rates  are  estab- 
lished as  follows: 

Classes 12         3         4         5         6 

Rates 80       65       50       45       38       35 


Classes A  B  C  D  E       H  F 

C.li.    L.C.L.    C.L.    L.C.t.    C.L.    L.C  L.    C.L.    L.C.L.  CX.    L.C.L. 

Rates 28       30      32       37       23       28       19       23      30      38      42       50 

The  class  rates  from  Cairo  to  Ackerman  having  been 
fixed,  the  class  rates  from  other  points  of  origin,  except 
from  Memphis,  Tenn.,  are  made  by  adding  the  same  dif- 
ferentials to  the  class  rates  from  Cairo  as  those  shown 
in  Table  68. 

The  class  rates  from  Memphis  to  Ackerman  are  fixed 
arbitrarily  as  follows: 

Classes 1         2         3         4         5         6 

Rates 63       61       38       35       29       27 

Qasses A  B  C  DEEP 

C.L.    L.C.L.    C.L.    l/.C.L.    C.L.    L.C.L.    C.L.    L.C.L.  C.L.    t.C.I.. 

Rates 21       25       28       31        18       23       IS       19       22       30       32       40 


INTERIOR  MISSISSIPPI  POINTS  2»i 

(n)   To  Agricultural  <t  Mechamcal  College,  Aberdeen, 

Binford,  Columbus,  Maben,  Mathiston,  J^hd- 

drow,  Osborn,  Starkville,  Strong,  and 

West    Point,   Miss. 

Memphis,  Teim.,  is  the  base  point  for  the  class  rates 
to  Agricultural  &  Mechanical  College,  Aberdeen,  Bin- 
ford,  Columbus,  Maben,  Mathiston,  Muldrow,  Osborn, 
Starkville,  Strong,  and  West  Point,  Miss.,  the  class 
rates  from  Memphis  being  as  follows: 

Classes 123456ABCDEHF 

Rates 72  58  44  39  32  26  24  30  10  16  23  29  32 

The  class  rates  from  Memphis  to  Agricultural  & 
Mechanical  College,  Aberdeen,  Binford,  Columbus,  Ma- 
ben, Mathiston,  Muldrow,  Osborn,  Starkville,  Strong, 
and  West  Point  having  been  fixed,  the  class  rates  from 
Cairo,  111.,  are  made  by  adding  the  following  differ- 
entials to  the  class  rates  from  Memphis: 

Classes 123456ABCDEHF 

Differentials 8    7    6    6    6    6    4    4    4    4    7    9    8 

The  class  rates  from  other  points  of  origin  to  Agri- 
cultural &  Mechanical  College,  Aberdeen,  Binford,  Co- 
lumbus, Maben,  Mathiston,  Muldrow,  Osborn,  Stark- 
ville, Strong,  and  West  Point  are  made  by  adding  the 
same  differentials  to  the  class  rates  from  Cairo  as 
those  shown  in  Table  68. 

(a)   To  Winona,  Miss. 

Cairo,  111.,  is  the  base  point  for  the  class  rates  to 
Winona,  Miss.,  the  class  rates  from  Cairo  being  as  fol- 
lows : 

Classes 1         2         3         4         5         8 

Rates 80       65       50       45       38       32 

Classea A  B  C  D  EH  F 

C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.    C.L.    L.C.L.  C.L.    L.C.L. 

Rates 26       30       32       36        19       21        18       21        30       38       38     42 


296        FREIGHT  RATES :  SOUTHERN  TERRITORY 

The  class  rates  from  Cairo  to  Winona  having  been 
fixed,  the  class  rates  from  Memphis,  Tenn.,  are  made 
the  following  differentials  under  the  class  rates  from 
Cairo : 

Classes 1      2      3      4     66ABCDEHF 

Differentials 17     14     12     10    9    8    5    6    5    5    8    8     10 

The  class  rates  from  other  points  of  origin  to  Winona 
are  made  by  adding  the  same  differentials  to  the  class 
rates  from  Cairo  as  those  shown  in  Table  68. 

(p)  To  Greenwood,  Belgrade,  Belzoni,  Hardcash,  Silver 
City,  and  Yazoo  City,  Miss. 

Memphis,  Tenn.,  is  the  base  point  for  the  class  rates 
to  Greenwood,  Belgrade,  Belzoni,  Hardcash,  Silver  City, 
and  Yazoo  City,  Miss.,  the  class  rates  from  Memphis  be- 
ing as  follows: 

Classes 1         2         3         4         5         6 

Rates 64       54       46       39       32       29 

CIsBses A  B  C  D  E        H  F 

C.L.    L.C.L     C.L.  L.C.L.     C.L.    L.C.L.    C.L.    L.C.L.  C.L.   L.C.t. 

Rates 22       27       27       31       16       18       15       18       22       32       32       36 

The  class  rates  from  Memphis  to  Greenwood,  Bel- 
grade, Belzoni,  Hardcash,  Silver  City,  and  Yazoo  City 
having  been  fixed,  the  class  rates  from  other  points  of 
origin  are  made  on  the  differential  basis  set  forth  in 
Table  69. 

{q)  To  McKenzie,  Tenn. 

Cairo,  111.,  is  the  base  point  for  the  class  rates  to 
McKenzie,  Tenn.,  the  class  rates  from  Cairo  being: 

Classes 123466ABCDEHF 

Rates 41  35  30  24  22  19  16  23  17  13  20  20  34 


INTERIOE  MISSISSIPPI  POINTS 


297 


TABLE  69 

Differentials  Used  in   Constructing  Class  Rates  to 

Greenwood,    Belgrade,    Belzoni,    Hardcash, 

Silver  City,  and  Yazoo  City,  Miss. 


From  Gboops 

DlFFKRENTIALS 

Exc 

IN  Cents  per  100  Pocndb 
EFT  AS  Noted 

Remarks 

1 

2 

3 

4 

5 

Classes' 
6    A    B 

C 

D 

E 

H 

F» 

Cairo 

17 
17 

14 
14 

12 
12 

10 
10 

9 
9 

8 
8 

5 

5 

6 
6 

5 
5 

5 
5 

8 
8 

8 
8 

10 
10 

Over 

Nashville 

Memphis  rates 

Evansville 

12 
23 
15 
33 
33 
33 
33 
15 

9 
20 
12 
27 
27 
27 
27 
12 

7 
18 
10 
20 
20 
20 
20 
10 

6 
12 

8 
16 
16 
16 
16 

8 

5 
11 

7 
14 
14 
14 
14 

7 

4 
10 

6 
12 
12 
12 
12 

5 

2 

7 

4 

10 

10 

10 

10 

4 

3 
10 

5 
14 
14 
14 
14 

2 

f 

5 
11 
11 
11 
11 

2 

3 

7 
5 
11 
11 
11 
11 
2 

3 

8 
5 
10 
10 
10 
10 
5 

3 

8 

5 

11 

11 

U 

11 

5 

5 

14 
10 
22 
22 
22 
22 
8 

St.  Louis-Louisville. . .  . 
Peoria 

Over 

Pana 

Cairo  ratei 

Indiauapolis 

Chicago 

Illinois  Central  Railroad 

Milwaukee 

6 

5 

4 

3 

2 

2 

2 

2 

2 

2 

2 

2 

4 

Over 
Chicago  rates 

'Governed  by  the  Southern  ClassificatioD. 
'Per  barreL 

The  class  rates  from  Cairo  to  McKenzie  having  been 
fixed,  the  class  rates  from  other  points  of  origin,  ex- 
cept from  Nashville  and  Memphis,  Tenn.,  are  made  by- 
adding  the  same  differentials  to  the  class  rates  from 
Cairo  as  those  shown  in  Table  65. 

The  class  rates  from  Nashville  to  McKenzie  are  made 
the  same  as  the  class  rates  from  Nashville  to  Martin, 
Tenn.,  viz.: 

Classes 123456ABCDEHF 

Rates 46  40  35  29  25  21  17  24  18  14  21  21  36 

The  class  rates  from  Memphis  to  McKenzie  are  made 
the  same  as  the  class  rates  from  Nashville  to  McKenzie. 

(r)  To  Houston,  Miss. 


Memphis,  Tenn.,  is  the  base  point  for  the  class  rates 
to  Houston,  Miss.,  the  class  rates  from  Memphis  being; 

Classes 1    2    3    4    5    6ABCDEHF 

Rates 72  58  44  39  32  26  24  30  16  16  23  29  32 


298 


FREIGHT  RATES:  SOUTHERN  TERRITORY 


The  class  rates  from  Memphis  to  Houston  having 
been  fixed,  the  class  rates  from  other  points  of  origin 
are  made  on  the  differential  basis  set  forth  in  Table  70. 

TABLE  70 

Differentials  Used  in   Constkucting   Class  Rates  to 

Houston,  Miss. 


From  Groups 

Differentials 
Exc 

IN  Cents  per  100  Pounds 
EPT  AS  Noted 

Remarks 

1 

2 

3 

4 

5 

Classes' 
6    A    B 

c 

D 

E 

H 

Ft 

Cairo 

8 

7 

6 

6 

6 

6 

4 

4 

4 

4 

7 

8 

8 

Over 
Memphis  rates 

Nashville 

11 
34 
43 
34 
34 
38 
38 
17 
41 

9 
29 
37 
29 
28 
32 
32 
15 
34 

8 
24 
32 
24 
23 
29 
29 
13 
30 

6 

18 
25 
18 
17 
21 
21 
9 
22 

4 
13 

19 
13 
14 
16 
16 
7 
18 

3 
11 
16 
11 
13 
15 
15 

5 
16 

3 
10 
14 
10 
10 
12 
12 

5 
14 

3 

8 
15 
10 

9 
11 
11 

2 
15 

li 

5 
12 

7 

9 
11 
11 

4 
13 

1 
3 
8 
5 

7 
9 
9 
4 
10 

3 

10 
14 
10 
12 
13 
13 
5 
14 

5 

17 
21 
17 
15 
17 
17 
5 
17 

3 

10 
24 
14 
18 
22 
22 
8 
26 

Evansville 

Cincinnati 

St.  Louis-Louisville .... 
Pana 

Over 
Cairo  rates 

Peoria 

Indianapolis 

Illinois  Central  Railroad 
Chicago 

Milwaukee 

6 

5 

4 

3 

2 

2 

2 

9 

2 

2 

2 

2 

Over 
Chicago  rates 

•Governed  by  the  Southern  Classification. 
sper  barrel. 


2.    From  Points  in   Southeastern   Territory 


(a)  From  Chattanooga,  Tenn. 


To  Union  City,  Tenn. — The  rates  are  made  the  follow- 
ing differentials  over  the  rates  from  Chattanooga  to 
the  Paris,  Tenn.,  group: 

Classes 1     2     3     4     5     6ABCDEHFKLMNO 

Differentials 333221111111211111 

To  Gihbs,  Martin,  Paris,  and  McKenzie,  Tenn. — The 
rates  are  made  not  less  than  the  rates  from  Louisville  to 
Martin. 

To  Rives,  Tenn. — The  rates  are  made  the  same  differ- 
entials over  the  rates  to  Union  City  as  were  used  in  mak- 


INTERIOR  mSSISSIPPI  POINTS  299 

ing  the  rates  from  Nashville  to  Rives  as  compared  with 
Union  City. 

To  Milan,  Humboldt,  and  Jackson,  Tenn. — The  rates 
are  made  not  less  than  the  rates  from  Louisville  to 
Jackson,  Tenn. 

To  Grand  Junction,  Tenn.,  and  Corinth,  Miss. — The 
rates  are  made  not  less  than  those  from  Cairo,  applying 
the  less-than-carload  rates  on  lettered  classes,  except 
that  the  rates  from  Cairo  made  on  the  Memphis  combi- 
nation do  not  apply  from  Chattanooga,  nor  are  the  rates 
to  Grand  Junction  to  be  less  than  those  to  Corinth 
except  when  made  on  the  Memphis  combination. 

To  Holly  Springs,  Miss. — The  rates  are  made  not 
less  than  those  from  Nashville,  except  that  the  Nash- 
ville rates  made  on  the  lowest  combination  do  not  apply 
from  Chattanooga. 

To  Tupelo,  Aberdeen,  West  Point,  Starkville,  Colum- 
bus, Winona,  Greenwood,  Belzoni,  and  Yazoo  City, 
Miss. — The  rates  are  made  the  same  as  those  from  Nash- 
ville. 

To  New  Albany,  Miss. — The  rates  are  made  the  same 
as  those  to  Tupelo,  Miss. 

To  Houston,  Maben,  and  Mathiston,  Miss. — The  rates 
are  made  the  same  as  those  to  Aberdeen,  with  contin- 
uous locals  or  the  lowest  combination  as  maxima. 

(b)  From  Birmingham,  Ala. 

To  Union  City,  Paris,  and  McKenzie,  Tenn. — The 
rates  are  made  as  much  higher  than  the  rates  to 
Jackson,  Tenn,,  as  the  rates  from  Cairo  to  Union  City, 
Paris,  and  McKenzie,  respectively,  are  lower  than  the^ 
rates  from  Cairo  to  Jackson. 

To  Gibbs,  Martin,  and  Rives,  Tenn. — The  rates  are 
made  as  much  higher  than  the  rates  to  Jackson,  Tenn., 


300        FREIGHT  RATES :  SOUTHERN  TERRITORY 

as  the  rates  from  Cairo  to  Gibbs,  Martin,  and  Rives, 
respectively,  are  lower  than  the  rates  from  Cairo  to 
Jackson. 

To  Milan,  Humboldt,  and  Jackson,  Tenn. — The  rates 
are  made  not  less  than  those  from  Chattanooga. 

To  Grand  Junction,  Tenn.,  and  Corinth,  Miss. — The 
rates  are  made  the  same  as  those  from  Nashville,  but 
not  less  than  those  to  Memphis. 

To  Holly  Springs,  Miss. — Specific  rates  are  checked  in. 

I'o  New  Albany,  Miss. — The  rates  are  made  the  locals 
of  the  Frisco  Line,  with  the  rates  to  Holly  Springs  as 
maxima. 

To  Tupelo,  Aberdeen,  West  Point,  Starkville,  Colum- 
bus, and  Winona,  Miss. — The  rates  are  made  the  follow- 
ing differentials  under  the  rates  from  Chattanooga,  but 
not  higher  than  the  lowest  combination  or  the  local 
scales  of  a  continuous  line. 

Classes 123456ABCDEHF 

Differentials 6544332222224 

To  Houston,  Maben,  and  Mathiston,  Miss. — The  rates 
are  made  the  same  as  those  to  Aberdeen,  but  do  not 
exceed  the  lowest  combination  or  the  local  rates  of  a 
continuous  line. 

To  Greenwood,  Miss. — The  rates  are  made  the  fol- 
lowing differentials  less  than  the  rates  from  Chatta- 
nooga, with  the  rates  to  Winona,  Miss.,  as  maxima. 

Classes 1    23456ABCDEHF 

Differentials 6544332222224 

To  Belzoni,  Miss. — The  rates  are  made  the  same  as 
those  to  Yazoo  City. 

To  Yazoo  City,  Miss. — The  rates  are  made  the  fol- 
lowing differentials  less  than  the  rates  from  Chatta- 
nooga : 

Clasaes 123466ABCDEHF 

Differentials 6     5    4     4     3     3     2     2     2     2     2    2     4 


INTEEIOE  MISSISSIPPI  POINTS  101 

(c)  From  Knoxville,  Tenn. 

To  Grand  Junction,  Tenn.,  and  Corinth,  Miss. — The 
rates  are  made  the  following  differentials  over  the  rates 
from  Chattanooga,  with  the  local  rates  of  the  Southern 
Railway  as  maxima. 

Classes 123456ABCDEHF 

Differentials 25  20  18  16  12  10   8   11  10   9   14  13  17 

To  Junction  Points  North  of  Grand  Junction  and 
Corinth.^ — The  lowest  combination  or  continuous  local 
rates  prevail. 

To  Junction  Points  South  of  Grand  Junction  and 
Corinth} — The  rates  are  made  the  follomng  differen- 
tials over  the  rates  from  Chattanooga: 

Classes 1     23456ABCDEHF 

Differentials 12    9    7     6    5    4    3    3    3    3    3    3    6 

{d)    From  Rome  and  Dalton,  Ga. 

To  Grand  Junction,  Tenn.,  Corinth,  Miss.,  and  Junc- 
tions North  Thereof. — The  rates  are  made  on  the  lowest 
combination,  but  do  not  exceed  the  local  rates  of  any 
continuous  line. 

To  Junctions  South  of  Grand  Junction  and  Corinth. 
— The  rates  are  made  the  same  as  those  from  Chatta- 
nooga, but  not  higher  than  the  lowest  combination  or 
the  local  scale  of  a  continuous  line. 

(e)  From  Atlanta,  Ga.,  and  Group 

To  Grand  Junction,  Tenn.,  and  Corinth,  Miss. — The 
rates  are  made  the  same  as  those  to  Memphis,  Tenn., 
except  that  the  rate  on  Class  A  is  arbitrarily  fixed. 

'From  Montgomery  and  Selma,  Ala.,  specific  rates  are  checked  in,  which 
in  a  general  way,  are  made  with  due  regard  to  the  local  scales,  tb«  lowest 
combmation,  and  the  rates  from  Birmingham  and  other  centers. 


302        FREIGHT  RATES :  SOUTHERN  TERRITORY 

To  Junctions  North  of  Grand  Junction  and  Corinth. — 
The  rates  are  made  on  the  lowest  combination,  but  are 
not  in  excess  of  the  local  rates  of  any  continuous  line. 

To  Holly  Springs  and  New  Albany,  Miss. — The  basis 
is  the  same  as  that  stated  to  Corinth. 

To  Other  Jimctions. — The  rates  are  the  same  as  those 
from  Chattanooga,  but  are  not  higher  than  the  lowest 
combination  or  the  local  rates  of  a  continuous  line. 

(/)  From  Augusta  and  Athens,  Ga. 

To  All  Junctions. — The  rates  are  made  the  following 
differentials  higher  than  the  rates  from  Atlanta: 

Classes 123456ABCDEHF 

Diflferentials 5     5    44332222344 


{g)  From  Macon,  Ga. 

To  Junctions  North  of  Jackson,  Tenn. — The  rates 
are  made  on  the  lowest  combination. 

To  Jackson  and  Grand  Junction,  Tenn.,  Holly 
Springs,  New  Albany,  Corinth,  Tupelo,  Aberdeen,  West 
Point,  Columbus,  Houston,  Maben,  Mathiston,  Winona, 
and  Greenwood,  Miss. — The  rates  are  made  the  follow- 
ing differentials  higher  than  the  rates  from  Atlanta: 

ClasscB 1    234    56ABCDEHr 

Differentials 5544332211342 

To  Starkville,  Belzoni,  and  Yazoo  City,  Miss. — The 
rates  are  made  the  following  differentials  higher  than 
the  rates  from  Atlanta: 

Classefl 123466ABCDEHF 

Differentials 333222221      1222 


INTPmiOR  MISSISSIPPI  POINTS  303 

(h)  From  Milled geinlle,  Ga.,  and  Group 

To  All  Junctions. — The  I'ates  are  made  the  same  as 
those  from  Macon. 

(i)  From  Columbus,  Ga. 

To  Grand  Junction,  Tenn.,  Holly  Springs,  New  Al- 
bany, Corinth,  Tupelo,  Aberdeen,  West  Point,  Colum- 
bus, Houston,  Maben,  Mathiston,  Starkville,  Winona, 
and  Greenwood,  Miss. — The  rates  are  made  the  same 
as  those  from  Atlanta. 

To  Belzoni  and  Yazoo  City,  Miss. — The  rates  are 
made  the  same  as  those  from  Atlanta,  but  not  higher 
than  those  from  Chattanooga. 

To  Other  Junctions. — The  lowest  combination  pre- 
vails. 

{j)  From  Other  Points  in  Southeastern  Territory 

Kates  from  some  of  the  common  points  not  specific- 
ally set  out  are  made  with  relation  to  the  foregoing. 
Otherwise,  the  lowest  combination  generally  prevails, 
with  the  local  scales  of  any  continuous  line  as  maxima. 
The  rates  on  manufactured  commodities,  however, 
whether  produced  at  local  or  competitive  points,  are,  as 
a  rule,  given  rates  in  close  relation  to  those  from  some 
one  or  the  other  of  the  basing  points  whose  rates  are 
defined  in  the  foregoing. 

3.    Fkom  Teunk  Line  Territory 

From  Trunk  Line  Territory,  the  basis  of  the  lowest 
combination  prevails,  proportional  rates,  in  some  eases, 
being  a  factor. 


304        FEEIGHT  KATES :  SOUTHERN  TERRITORY 
4.    From  Central  Freight  Association  Territory 

From  Central  Freight  Association  Territory,  except 
as  included  in  the  foregoing,  and  from  points  west 
of  the  Mississippi  River,  through  rates  are  made  on 
the  lowest  combination. 

This  combination  may  make  through  the  various  Mis- 
sissippi River  Crossings  and  Ohio  River  Crossings  and 
necessitates  considerable  figuring  in  order  to  determine 
the  lowest  basis  on  combination  that  can  be  employed  to 
the  best  advantage. 


CHAPTER  XXI 
adjustment  to  kentucky-tennessee  territory 

1.    Description 

This  territory  may  be  defined  as  tliat  being  bounded 
on  the  east  by  the  main  lines  of  the  Louisville  &  Nash- 
ville Railroad,  through  Middlesboro,  Ky.,  to  Knoxville, 
Tenn.,  and  thence  to  the  Tennessee-Georgia  state  line; 
on  the  west  by  the  lines  on  and  east  of  the  Illinois  Cen- 
tral Railroad  and  the  Mobile  &  Ohio  Railroad  from 
Cairo,  III,  through  Jackson,  Tenn.,  to  Corinth,  Miss.; 
on  the  south  by  the  southern  boundary  of  Tennessee,  but 
not  including  Chattanooga,  Tenn.;  and  on  the  north 
by  the  Ohio  River.  With  the  exception  of  the  junction 
points  along  the  border,  the  rates  to  points  within  this 
group  are  essentially  within  the  control  of  the  railroads 
serving  it,  modified  by  the  stress  of  river  competition 
only  in  the  case  of  Nashville  and  Clarksviile,  Tenn.,  and 
Frankfort,  Ky. ;  that  is  to  say,  there  is  not  the  compe- 
tition of  groups  of  roads,  each  serving  widely  removed 
sections  of  the  country,  such  as  is  found  in  the  south- 
east. 

2.    To  CENTKAii  Kentucky  Junction  Points 

To  Frankfort,  Ky.,  the  rates  from  Louisville  are  held 
to  a  comparatively  low  basis  by  the  force  of  boat  com- 
petition, affording  through  service.  The  Kentucky 
River  is  navigable  all  the  year,  having  been  improved 

305 


306         FREIGHT  RATES :  SOUTHERN  TERRITORY 

by  the  government  to  afford  slack  water  from  its  mouth 
to  Lock  No.  13  near  Beattjn/iile,  Ky.,  a  distance  of  240 
miles.  There  is  also  water  competition  down  the  Ohio 
River  from  Cincinnati,  but  as  there  has  not  been  through 
boat  service  from  that  city,  the  rail  lines  have  been 
able  to  place  their  rates  therefrom  on  a  higher  basis 
than  from  Louisville,  commensurate  mth  the  greater 
rail  distance. 

To  Lexington,  Ky.,  the  principal  city  east  of  Louis- 
ville, and  located  about  equidistant  from  Cincinnati  and 
from  Louisville,  the  rates  from  these  larger  cities  are 
equal.  They  measure  lower  than  the  corresponding 
local  scales  of  the  competing  lines,  being  the  develop- 
ment of  competition  through  a  long  period  of  years 
between  the  interested  rail  lines,  aided  somewhat  by 
the  commercial  position  of  Lexington. 

The  rates  to  other  of  these  junction  points — Paris, 
Georgetown,  Midway,  Versailles,  Nicholasville,  Rich- 
mond, Winchester,  Junction  City,  and  Shelbyville — from 
Louisville  and  Cincinnati  are  all  somewhat  lower  than 
would  be  produced  by  the  corresponding  local  scales 
of  the  lines  serving  them;  the  differences  (except  in 
the  case  of  Winchester)  are  not  so  marked  as  in  the 
Lexington  rates.  The  rates  developed  are  the  logical 
outcome,  as  in  the  case  of  Lexington,  of  the  efforts  of 
the  railroads  serving  these  places,  each  endeavoring 
to  secure  the  maximum  possible  amount  of  freight 
handled  by  these  cities.  For  illustration,  suppose  that 
one  line  was  in  a  position  to  compete  more  successfully 
from  or  via  Louisville,  and  another,  from  or  via  Cincin- 
nati; the  geographical  location  in  the  one  case  would 
favor  Louisville  and,  as  a  result,  the  Cincinnati  line 
would  have  to  reduce  the  rates  in  order  to  bring  about 
a  better  commercial  relationship  with  Louisville  than 
would  be   afforded  by   strictly   regarding  distances   as 


KENTUCKY-TENNESSEE  TERRITORY  307 

the  measure  of  the  relative  rates.  At  another  junction 
point,  the  reverse  conditions  would  apply.  Then,  again, 
the  necessity  of  keeping  the  adjustment  of  rates  at  one 
junction  point  in  fair  alignment  with  that  at  another 
was  a  cause  tending  to  a  lowering  of  the  rates  that 
would  otherwise  have  been  applied. 

From  the  South,  the  rates  to  Lexington  are  invariably 
no  higher  than  the  rates  to  Cincinnati,  and  while  the 
mileage  tariff  or  the  lowest  combination  is  generally 
the  prevailing  basis  to  the  other  junction  points,  this 
affects  only  a  minor  amount  of  the  southern  traffic 
reaching  those  places,  as  on  the  heavier  and  highly 
competitive  movements  the  rates  are  made  the  same 
as  those  to  Louisville  or  to  Cincinnati,  or  slight  differ- 
entials higher. 

From  the  East,  the  rates  to  Lexington  and  Winches- 
ter are  on  the  Trunk  Line  basis,  being  made  so  by 
the  Chesapeake  &  Ohio  Eailway,  which  reaches  both 
of  these  points  and  which  follows  that  basis  to  all  of 
its  stations.  Otherwise,  the  basis  from  the  Western 
Termini  of  the  Trunin  Lines  and  points  east  thereof 
and  from  the  Virginia  Cities  is  the  lowest  combination. 
This  is  the  basis  also  observed  from  the  Ohio  River 
Crossings  west  of  Louisville  and  from  all  points  in  the 
North  and  in  the  West. 

3.  To  West  Kentucky  Junctions — Central  City,  Hop- 

KINSVILLE,    MORGANFIELD^    NORTONVILLE,    GraCEY, 
AND   ElIZABETHTOWN 

Generally,  the  rates  between  these  points  and  the 
Ohio  River  Crossings  and  St.  Louis  are  below  the 
measure  of  the  corresponding  local  scales  of  any  one 
of  the  lines  serving  these  points.  The  rates  have  been 
built  up,  however,  on  the  local  basis  from  the  nearest 


308        FEEIGHT  RATES  t  SOUTHERN  TERBITOBT 

Ohio  River  city,  the  lower  class  or  commodity  rates  of 
any  of  the  railroads  serving  them  being  fixed  as  the 
rales  of  all.  Some  attention,  of  course,  has  been  paid, 
in  making  this  adjustment,  to  the  commercial  situation 
of  the  terminal  city  with  respect  to  the  surrounding 
territory.  The  rates  from  the  nearest  point  having 
been  checked  in,  the  rates  from  the  more  distant  junc- 
tions are  then  made  on  a  more  or  less  arbitrary  basis, 
worked  out  by  the  interested  lines,  each  making  proper 
allowances  for  the  paramount  interests  of  the  others; 
such  rates  are  mostly  below  the  level  of  the  local  scales. 

From  points  in  the  South,  the  rates  are  generally 
made  on  the  lowest  combination,  but  on  many  of  the 
important  commodities,  conditions  have  brought  about 
fixed  through  rates  which  closely  approximate  those 
to  the  more  highly  competitive  points  in  the  general 
territory.  Much  the  greater  portion  of  the  tonnage 
handled  from  the  South  is  on  the  latter-named  rates. 
While  the  basis  is  the  mileage  tariff  or  the  lowest  com- 
bination, as  the  case  may  be,  on  the  articles  produced 
at  these  junctions,  the  outbound  rates  are  the  same  as, 
or  slight  differentials  higher  than,  the  corresponding 
rates  from  the  Ohio  River. 

To  and  from  points  in  the  North,  West,  and  East,  the 
basis  is  the  lowest  combination,  the  only  exceptions 
being  a  few  specific  commodity  rates  which  are  lower 
than  the  basis  produces. 

4.  To  Nashville  and  Claeksville,  Tenn. 

These  points  are  located  on  the  Cumberland  River, 
and,  as  cities  in  the  South  go,  have  considerable  age 
and  history.  Long  before  there  were  railroads  reach- 
ing either,  they  were  towns  of  importance.  Nashville, 
particularly,    was    a    trading    and    distributing    center, 


KENTUCKY-TENNESSEE  TERRITORY  809 

using  the  river  as  its  principal  highway,  reaching  north- 
ward until  it  met  the  force  of  Louisville  competition, 
westward  where  it  strove  with  Memphis  and  St.  Louis, 
and  southward  beyond  the  Tennessee  River.  Within 
this  wide  territory  its  principal  competitor  was  Clarks- 
ville. 

Clarksville  is  the  center  of  the  so-called  dark  tobacco 
district,  and  it  has  always  striven,  as  has  Nashville  (but 
not  as  successfully),  to  do  a  distributing  trade.  Its 
outward  business  of  tobacco  has  always  been  important. 

When  the  Louisville  &  Nashville  Railroad  was  first 
built  into  Nashville,  the  rates  at  the  time,  and  for  a 
considerable  period  thereafter,  were  applied  under  a 
progressive  mileage  tariff.  The  railroad  found,  how- 
ever, that  it  was  not  successful  in  competing  for 
traffic  between  Nashville  and  the  Ohio  River  and  beyond 
with  the  numerous  boat  lines,  which  gave  through 
service  between  Pittsburgh,  Cincinnati,  Louisville,  St. 
Louis,  Memphis,  and  New  Orleans.  To  control  a  share 
of  the  trade,  particularly  that  to  and  from  Louisville 
and  Cincinnati  and  beyond,  the  railroad  first  reduced 
the  rates  on  some  of  the  important  commodities, 
gradually  extending  the  list,  until  finally  it  was  en- 
deavoring to  meet  the  boat  competition  with  rates 
somewhat  higher  than  the  corresponding  water  rates, 
on  all  commodities.  The  boat  rates  were  not  stable. 
There  was  keen  competition  among  them,  and  it  was 
the  practice  of  the  masters  or  the  officials  to  make 
a  rate  sufficiently  low  to  control  any  lot  of  freight 
offered. 

There  is  a  photograph  in  existence,  taken  about 
fourteen  years  after  the  completion  of  the  first 
railroad  from  the  North,  showine:  the  wharf  at  Nash- 
ville absolutely  crowded  with  boats,  lome  lying  in  mid- 
stream waiting  their  turn  to  make  a  landing;  and  it 


310         FREIGHT  RATES :  SOUTHERN  TERRITORY 

is  not  surprising  under  such  a  condition  tliat  the  rates 
were  unstable  and  traffic  often  handled  at  a  loss.  The 
existing  abnormally  low  rail  rates  are  the  crystalliza- 
tion of  the  fierce  competition  between  the  water  lines 
and  of  the  efforts  of  the  railroads  to  control  a  share 
of  the  available  traffic. 

After  the  railroad  was  completed  to  Clarksville  it 
was  not  much  stronger  in  controlling  a  fair  share  of 
the  tonnage  at  that  point  than  had  been  the  case  of 
the  Nashville  line;  in  fact,  as  late  as  1872  it  was 
handling  only  about  10  per  cent  of  the  total  inbound 
and  outbound  tonnage,  although  it  made  the  same  net 
rates  as  given  Nashville. 

After  the  rail  lines  were  constructed  to  Evansville 
and  on  to  St.  Louis  and  between  Cincinnati  and 
Louisville,  Evansville  was  given,  approximately,  the 
same  rates  as  Louisville,  the  cost  of  transfer  over  the 
Ohio  River  being  added,  and  the  rates  from  St.  Louis 
were  made  as  much  higher  than  the  rates  from  Evans- 
ville as  the  all-water  transportation  admitted.  The 
rates  from  Cincinnati  were  made  by  adding  to  the 
Louisville  rates  figures  fairly  representative  of  the 
cost  of  shipping  by  water  to  Louisville  plus  the  cost 
of  transfer  from  wharf  to  depot  at  Louisville. 

The  keenness  of  the  water  competition  has  greatly 
subsided,  due,  in  the  first  place,  to  the  cut-throat  com- 
petition among  the  boat  lines  themselves  and,  in  later 
years,  to  the  gradual  development  of  rail  facilities, 
affording  a  preferable  character  of  transportation. 
Nevertheless,  the  railroads  have  not  been  able  to  make 
any  general  advances  in  these  rates  because  of  the 
potentiality  of  the  water  competition  and  because  Nash- 
ville's trade  has  been  developed  by  the  low  rates  which 
it  was  able  to  force  by  means  of  the  water  competition. 

The  rates  between  Nashville  and  all  the  competitive 


KENTUCKY-TENNESSEE  TERRITORY  311 

territory  southward  are  made  differentials  below  the 
rates  to  and  from  Louisville,  as  has  heretofore  been 
described. 

The  first  rail  line  at  Nashville  was  the  one  reaching 
Chattanooga.  This  road  began  developing  a  through 
traffic  in  connection  with  the  river  lines,  charging  its 
full  rate  from  Nashville.  It  continued  its  working 
relations  mth  the  boat  lines  for  quite  a  period  fol- 
lowing the  construction  of  the  railroad  from  the  north. 
On  through  traffic  exchanged  with  the  northern  road, 
it  continued  to  charge  its  local  rate,  or  the  same  as  it 
was  charging  the  boats.  This  arrangement  naturally 
gave  Nashville  a  rather  commanding  position  in  the 
matter  of  relative  freight  charges,  in  that  the  charges 
paid  by  Nashville  at  points  south  of  it  were  equal  to 
those  paid  by  competing  cities  using  the  Nashville 
route.  With  the  beginning  of  the  development  of  the 
through  rate  fabric  from  the  West  to  the  South,  and 
the  fixing  of  the  relationship  of  one  city  with  another 
on  a  fair  basis,  Nashville  lost  some  of  this  position,  but 
the  lines  serving  it  towards  the  South  were  able  to 
control  the  conditions  to  a  considerable  extent.  While, 
therefore,  the  Nashville  differentials  under  the  rates 
from  Louisville  are  today  materially  less  than  the 
rates  between  Nashville  and  the  Ohio  River,  thev  are 
wider  than  is  found  generally  in  the  South,  when  the 
geographical  relation  of  one  city  with  another  is  con- 
sidered. 

The  rates  from  New  York  to  Nashville  are  fixed  fig- 
ures, reflecting  the  rail  charges  from  the  East  to 
Pittsburgh  and  Cincinnati  and  thence  the  water 
charges,  as  well  as  the  extraordinarily  keen  competi- 
tion of  the  Trunk  Lines  for  western  traffic  which 
occurred  in  the  two  decades  following  the  year  1870. 
The  rates  from  interior  eastern   points   and   from   the 


312        FREIGHT  RATES :  SOUTHERN  TERRITORY 

Virginia  Cities  are  on  the  usual  Trunk  Line  relation 
with  the  rates  from  New  York.  There  are  also  through 
rates  eastbound  which  are  likewise  a  crystallization 
of  competitive  conditions.  The  rates  between  Buffalo- 
Pittsburgh,  Central  Freight  Association,  and  AVestern 
territories  on  the  one  hand  and  Nashville  on  the  other 
hand,  are  on  the  lowest  combination  through  the  Ohio 
and  Mississippi  river  gateways. 

5.     To     MiDDLESBOKO,     Ky.,     AND     CUMBERLAND     GaP     AND 

Jellico,  Tenn. 

The  Louisville  &  Nashville  Railroad  Company,  until 
a  few  years  ago,  had  no  lines  beyond  the  Tennessee 
state  line  in  this  direction.  The  Southern  Railway  and 
its  predecessors,  however,  had  branches  extending 
northwardly  from  Knoxville,  Tenn.  The  rates  between 
Louisville  and  Jellico,  Tenn.,  were  reduced  at  different 
times  because  of  the  competition  from  and  via  Knox- 
ville. It  was  found  practicable  to  carry  slightly  higher 
rates  to  Middlesboro,  Ky.,  and  to  Cumberland  Gap, 
Tenn.,  than  to  Jellico,  Tenn.,  but  recently  the  Interstate 
Commerce  Commission  has  reduced  the  rates  to  Middles- 
boro to  the  Jellico  basis.^ 

The  rates  from  Louisville  having  been  fixed,  the  rates 
from  points  related  thereto  and  from  the  Cincinnati 
group  and  Lexington  were  made  the  same.  The  rates 
from  Evansville,  Ind.,  Owensboro  and  Henderson,  Ky., 
and  St.  Louis,  Mo.,  were  made  on  the  basis  of  the 
Carolina  differentials  as  related  to  the  adjustment  from 
Louisville. 

Speaking  generally,  the  rates  between  these  border 
points  and  other  places  in  the  general  territory  are 
made  on  the  lowest  combination,  but  do  not  exceed  the 

'T.  C.  C.  Docket  Nos,  4744,  4745,  and  4746,  Opinion  2804. 


KENTUCKY-TENNESSEE  TERRITORY  818 

mileage  scale  of  a  continuous  line.  There  are  numerous 
exceptions,  however,  made  to  meet  the  particular  con- 
ditions of  the  traffic  involved  and,  as  a  result,  these 
places  have  been  given  a  fair  adjustment  on  the  traffic 
in  which  they  are  particularly  interested,  considering 
the  conditions  under  which  the  traffic  is  handled  and 
the  adjustment  at  other  places. 

6.  To  Hakriman,  Haeriman  Junction,  and  Kockwood, 

Tenn. 

When  the  original  Act  to  Regulate  Commerce  became 
a  law,  the  management  of  the  Cincinnati,  New  Orleans 
&  Texas  Pacific  Railway  determined,  so  far  as  its  own 
traffic  was  concerned,  to  observe  literally  the  long-and- 
short-haul  provision  of  that  law.  As  it  was  not  able 
to  secure  an  advance  in  the  rates  between  Cincinnati 
and  Chattanooga,  it  adopted  the  existing  rates  between 
those  places  as  its  maximum  local  for  the  distance  and 
then  scaled  the  tariff  downward  for  the  lesser  distances. 
The  rates  from  Cincinnati  and  related  points  to  these 
junctions,  with  some  necessary  exceptions,  are,  approxi- 
mately, on  the  basis  of  the  very  low  local  tariff.  The 
rates  from  Louisville  and  group  are  the  same,  and  from 
the  lower  Ohio  River  Crossings  and  St.  Louis  the  rates 
are  made  Carolina  differentials  as  related  to  the  adjust- 
ment from  Louisville. 

To  and  from  points  in  the  South,  the  general  basis 
is  the  lowest  combination,  but  not  exceeding  the  mileage 
scale  of  a  continuous  line.  However,  just  as  in  the 
case  of  Middlesboro,  there  are  important  exceptions. 

From  Trunk  Line  and  interior  territories  the  rates 
are  made  the  same  as  those  to  Chattanooga. 

From  Central  Freight  Association  and  Western  terri- 
torifts,  the  basis  is  the  lowest  combination. 


314        FREIGHT  RATES :  SOUTHERN  TERRITORY 
7.  To  Knoxville,  Tenn. 

The  original  rates  to  and  from  the  Cincinnati  and 
Louisville  groups  were  the  same  as  the  corresponding 
rates  between  these  Ohio  River  cities  and  Chattanooga. 
When  the  Interstate  Commerce  Commission  ordered 
the  rates  to  Chattanooga  reduced,"  a  like  reduction  was 
not  made  to  Knoxville.  The  rates  from  the  lower  Ohio 
River  Crossings,  Memphis,  Nashville,  etc.,  are  made  on 
the  Carolina  differentials  as  related  to  the  adjustment 
from  Louisville. 

The  all-rail  and  rail-and-water  rates  from  New  York 
are  fixed  figures,  which  are  less  than  the  corresponding 
rates  to  Chattanooga.  The  rates  from  the  other  East- 
ern Cities,  interior  eastern  points,  and  the  Virginia 
Cities  are  made  the  southeastern  relationship  to  the 
rates  from  New  York.^  From  Buffalo-Pittsburgh  Ter- 
ritory the  same  basis  is  applied  as  that  to  Southeastern 
Territory  generally. 

The  rates  from  Knoxville  to  points  in  Carolina  Ter- 
ritory south  of  the  Walhalla  line  are  the  following 
differentials  higher  than  the  rates  from  Chattanooga, 
except  that  the  rates  so  made  must  not  exceed  the 
rates  from  Nashville. 

Classes 1     23456ABCDEHF 

Differentials 12    976543333336 

To  points  north  of  the  Walhalla  line,  with  the  excep- 
tion of  a  few  stations,  the  rates  are  made  the  same  as 
those  from  Chattanooga. 

The  rates  from  Knoxville  to  points  in  the  southeast 
are  generally  made  the  following  differentials  over  the 

nS  I.  C.  C.  Rep.,  440. 
•See  Cbapter^X. 


KENTUCKY-TENNESSEE  TERRITORY  315 

rates  from  Chattanooga,  with  the  Nashville  rates  or  the 
lowest  combination  as  maxima. 

Classes 1     23456ABCDEHF 

Differentials 12    976543333336 

The  commodity  rates  are  made  3  cents  over  the  rates 
from  Chattanooga. 

(«)  From  Mississippi  Valley  Territory 

From  Neiv  Orleans,  La. — The  rates  are  made  the 
Carolina  differentials  over  the  rates  from  Louisville  to 
Chattanooga. 

From  Vichshurg,  Natchez,  Greenville,  Jackson,  and 
Gulf  port,  Miss. — The  rates  are  made  the  same  as  those 
from  New  Orleans. 

From  Mobile,  Ala. — The  rates  are  made  the  following 
differentials  under  the  rates  from  New  Orleans : 

Classes 123456AB      C      D      E      H      F 

Differentials.     10  10..10  10     5     5^,4      4       4       4       5       10      8 

From  Pensacola,  Fla. — The  rates  are  made  the  same 
as  those  from  Mobile. 

From  Helena,  Ark. — The  rates  are  made  1  cent  per 
100  pounds  higher  than  the  rates  from  Greenville,  Miss. 

From,  Ellisville,  Hattieshurg,  Laurel,  and  Newton, 
Miss. — The  rates  are  made  the  same  as  those  from 
Vicksburg. 

From  Central  Freight  Association  and  Western  Ter- 
ritories.— The  lowest  combination  through  the  Ohio 
and  Mississippi  river  crossings  prevails. 

8.    To  MoERisTOWN,  Tenn. 

From  Louisville,  Ky.,  and  Cincinnati,  Ohio. — Th«i 
basis  is  the  lowest  combination,  using  as  base  points 


816        rREIGHT  RATES :  SOUTHERN  TERRITORY 

Bristol,  Chattanooga,  Knoxville,  and  Harriman  Junc- 
tion, Tenn.,  but  not  exceeding  combinations  of  rates 
using  the  following  base  rates  to  Jellico : 

Classes 123456ABCDEHF 

Rates 68  50  44  35  28  22  13  21  16  15  25  29  31 

and  the  following  base  rates  to  Bristol: 

Classes 1234     56ABCDEHF 

Rates 74  60  45  34^  29  23^  23^  29  23i  23^  28  36  47 

plus  the  full  rates  from  Jellico  and  Bristol,  respectively. 
The  Asheville,  N.  C,  rates  apply  as  maxima. 

There  are  various  commodity  exceptions  to  the  above 
basis. 

From  Evansville,  Ind. — The  rates  are  made  the  Caro- 
lina differentials  over  the  rates  from  Louisville. 

From  St.  Louis,  Mo. — Where  rates  from  Louisville 
are  made  on  the  Chattanooga,  Harriman  Junction, 
Jellico,  or  Knoxville  combination,  the  rates  from  St. 
Louis  are  made  the  southeastern  differentials  over  the 
rates  from  Evansville,  or  the  Carolina  differentials 
over  the  rates  from  Louisville,  whichever  basis  pro- 
duces lower  rates.  Where  rates  from  Louisville  are 
made  on  the  Bristol  combination,  or  by  use  of  the 
Asheville  maxima,  the  rates  from  St.  Louis  are  made 
the  Carolina  differentials  over  the  rates  from  Louis- 
ville. 

From  Memphis,  Tenn. — The  rates  are  made  the  Caro- 
lina differentials  as  related  to  the  adjustment  from 
Louisville. 

In  Opinion  1966,  in  the  case  of  the  Board  of  Trade 
of  Morristowm,  Tenn.,  et  al.,  v.  the  Atlantic  Coast  Line 
Railroad  Company,  et  al.,  the  Interstate  Commerce  Com- 
mission held: 

•  •  •  Upon  consideration  of  all  the  facts  before  us  in 
the»*  two  proc^^edings  onr  conclusions  are,  and  we  therefore 


EDNTUCKT.TENKESSEE  TEREITOEY  317 

find,  that  Morristown  and  other  points  intermediate  Bristol 
and  Knoxville  on  the  direct  line  via  Bristol  are  entitled  to 
rates  from  New  York  City  and  other  eastern  points  not  in  ex- 
cess of  rates  contemporaneously  in  effect  from  such  points  to 
Knoxville,  Tenn.    •    •    • 

Rates  have  been  established  accordingly. 
From  Central  Freight  Association  and  Western  Ter- 
ritories.— The  lowest  combination  applies. 

9.  To  Johnson  City,  Tenn. 

From  Cincinnati  and  Louisville  Groups. — The  rates 
are  made  on  the  lowest  combination,  using  the  following 
base  rates  to  Bristol,  Tenn.: 

Classes 123456      ABCDEHF 

Rates 74  60  45  34i  29  23J  23i  29  23i  23^  28  36  47 

From  Evansville,  St.  Louis,  and  Memphis  Groups. — 
The  rates  are  made  the  Carolina  differentials  as  related 
to  the  adjustment  from  Louisville. 

The  Trunk  Line  rates  are  the  same  as  those  to  Mor- 
ristown, Tenn.,  but  not  exceeding  the  lowest  combination. 

From  Central  Freight  Association  and  Western  Ter- 
ritories.— The  lowest  combination  prevails. 

10.  To  Local  Stations 

The  rates  between  the  Ohio  River  cities  and  local 
stations  in  this  territory  are  made  under  the  respective 
local  scales  of  the  several  lines.  Although  there  are 
some  unimportant  exceptions,  there  is  no  general 
attempt  to  adjust  the  rates  to  and  from  one  center  on 
a  differential  basis  as  compared  with  a  nearer  one,  with 
the  exception  that  in  the  case  of  the  rates  to  and  from 
Louisville  via  the  Southern  Railway  and  local  stations 


318         FREIGHT  RATES :  SOUTHERN  TERRITORY 

on  the  Cincinnati,  New  Orleans  &  Texas  Pacific  Railway 
there  is  a  definite  relationship  with  the  corresponding 
rates  to  Cincinnati. 

Between  these  local  stations  and  points  in  the  South, 
the  general  basis  is  the  combination  of  the  local  scales 
of  continuous  lines. 

To  and  from  points  in  Trunk  Line,  Carolina,  Central 
Freight  Association,  and  Western  territories,  the  basis 
is  the  lowest  combination. 

There  are  exceptions  in  the  case  of  articles  which  are 
produced  or  manufactured  at  these  local  stations  when, 
as  has  been  described  elsewhere,  competitive  rates  are 
established  in  relation  to  those  that  are  obtainable  from 
other  producing  points  or  territories  or  from  towns 
manufacturing  like  commodities. 


CHAPTER  XXII 

COMMODITY  ADJUSTMENTS 

1.  Competitive  Adjustments 

The  force  of  all  of  the  competitive  conditions  here- 
tofore described  has  gradually  resulted  in  commodity 
rates  that  are  less  than  would  apply  under  the  class 
ratings,  these  rates  being  established  to  the  large  cen- 
ters, which,  in  point  of  number,  specially  marks  out 
Southern  Territory.  With  the  exception  of  Trans- 
Continental  and  Southwestern  territories,  no  other 
section  of  the  country  works  under  such  large  lists  of 
commodity  rates.  This  condition  is  particularly  true 
as  concerns  the  tariffs  to  the  large  common  points. 
For  illustration,  on  March  1,  1914,  there  were  carried 
to  Atlanta  the  following  number  of  commodity  items: 
From  Louisville,  169;  from  New  York,  all-rail,  80;  rail- 
and- water,  92;  from  Savannah,  63;  and  from  New 
Orleans,  154.  From  St.  Louis  to  New  Orleans  the  com- 
modity tariffs  had  207  items. 

A  factory  in  the  South  having  to  secure  its  raw  or 
semi-manufactured  materials  from  outside  territory, 
competing  with  factories  much  nearer  the  original 
sources  of  supply  and  shipping  to  outside  as  well  as  to 
interior  territory,  in  competition  with  the  more  favor- 
ably situated  industries,  necessarily  has  to  have  a 
competing  adjustment.  The  class  rates  in  such  a  case 
would  probably  be  too  high,  and  relief  in  the  form  of 
comparatively  low  commodity  rates  is  warranted.   There 

319 


320         FEEIGHT  BATES :  SOUTHERN  TERRITORY 

may  be  a  kindred  factory  at  some  other  place  in  the 
territory,  which  is  doing  a  local  and  a  modest  outside 
business  and  which,  securing  its  supplies  from  the  same 
source,  demands  that  it  be  given  a  corresponding  re- 
duction, although  such  might  not  be  essential  except 
that  the  large  factory  would  otherwise  have  a  dominance 
in  the  second  factory's  own  territory. 

The  prevalence  of  water  competition,  perhaps,  has 
been  the  strongest  factor  in  bringing  about  commodity 
rates,  particularly  those  covering  manufactured  articles 
and  food  supplies;  wherever  there  is  a  commodity  im- 
portant in  the  amount  of  its  movement,  there  will  be 
found  special  rates  ranging,  in  a  greater  or  less  degree, 
below  the  measure  of  the  corresponding  class  rates. 
For  illustration,  the  great  sugar  refineries  on  the  north 
Atlantic  coast,  drawing  their  supplies  of  raw  sugar 
by  sea,  compete  with  the  Louisiana  refineries,  using 
local  raw  material,  and  with  the  beet  sugar  refineries 
in  the  Central  West.  These  refineries,  because  of  the 
volume  of  their  business,  are  able  to  secure  very  low 
commodity  rates  by  sea  to  Savannah,  Charleston,  etc., 
whence  the  sugar  is  handled  into  the  interior  on 
comparatively  low  rates.  The  lines  serving  New  Orleans 
and  the  Ohio  River  naturally  desire  to  see  the  producers 
in  their  sections  share  in  the  traffic.  As  the  class  rates 
are  too  high  to  attain  this  object,  commodity  rates  are 
established  to  the  places  thus  able  to  secure  low  rates; 
then,  as  the  market  competition  between  the  cities 
further  inland  and  those  near  the  coast  makes  itself 
felt,  the  former  are  able  to  secure  a  reduction  in  their 
respective  rates  on  sugar. 

The  very  low  all-water  class  rates  from  the  East  to 
New  Orleans  do  not  necessarily  estop  or  minimize  the 
movement  from  the  West  of  certain  articles  of  common 
production  under  class  rates;  as  to  articles  the  move- 


COMMODITY  ADJUSTMENTS  321 

ment  of  which  is  large,  the  value  relatively  low,  and 
the  margin  of  profit  small,  the  movement  from  the  West 
on  the  class  basis  is  prohibited.  Thus,  a  commodity 
rate  is  brought  about  which  is  sufficiently  low  to  enable 
the  traffic  to  be  handled  freely. 

In  some  instances,  the  lack  of  necessity  therefor  does 
not  cause  a  commodity  rate  made  to  a  particular  point 
to  be  extended  to  other  destinations  on  a  relative  basis. 
For  example,  a  place  like  Atlanta  has  a  larger  number 
of  commodity  rates  than  has  a  smaller  point  like 
Albany.  The  interested  carriers,  however,  are  always 
ready  to  make  a  proper  reduction  at  Albany  should  the 
necessity  arise. 

To  local  or  non-competitive  points,  the  same  prin- 
ciples which  bring  about  commodity  rates  to  competitive 
points  are  also  active,  except  that,  due  to  natural  con- 
ditions, there  is  a  lack  of  necessity  for  any  number 
of  commodity  items  being  published  to  these  smaller 
stations.  Should  a  factory  at  a  local  station  between 
Macon  and  Atlanta  require  raw  material  from  the 
West  to  enable  it  to  compete  successfully,  rates  will 
be  established  on  about  the  same  plane  that  would  be 
established  to  Macon,  the  further  distant  competitive 
point.  In  the  case  of  commodities,  however,  which  are 
merely  for  distribution  or  consumption,  the  same 
method  of  making  the  through  rates  is  employed  as  in 
connection  with  the  class  rates. 

The  outbound  commodity  rates  from  Southern  Terri- 
tory are  not  nearly  so  numerous  as  the  inbound  commod- 
ity rates.  They  are  chiefly  on  natural  or  manufactured 
products  which  come  into  competition  with  the  same  or 
similar  commodities  produced  at  the  outside  places. 
Rates  may  be  made  to  the  East  on  a  basis  sufficiently 
low,  if  such  is  the  requirement,  to  enable  a  free  move- 
ment  as    against   the    same   commodities    produced   in 


322         FREIGHT  RATES :  SOUTHERN  TERRITORY 

the  East;  or  a  somewhat  higher  proportionate  measure 
of  rates  may  be  made  to  the  East  because  the  competi- 
tion that  is  to  be  met  originates  in  the  Central  West 
and  not  in  the  East.  The  rates  to  the  Ohio  River 
Crossings  are  usually  measured  by  the  force  of  com- 
petition at  the  Ohio  River,  either  locally  or  from  like 
producing  centers  in  the  North.  They  are,  in  instances, 
somewhat  lower  than  might  be  necessary  to  meet  the 
local  competition  at  the  Ohio  River,  but  as  they  are  to 
be  used  in  basing  through  rates  to  points  north  they 
are  calculated  accordingly. 

Between  points  of  origin  there  is  a  definite  relation- 
ship just  as  exists  in  connection  with  the  class  rates, 
but  there  is  not  always  the  same  relationship  as  between 
points  of  destination.  While  usually  the  relationship 
is  carried  out  at  the  Oliio  River,  the  rates  to  Memphis 
and  New  Orleans  may  be  proportionately  higher  than 
would  be  the  case  under  the  southbound  adjustment. 
Then,  again,  there  is  often  to  be  observed  lower  rela- 
tive rates  to  the  East  than  to  the  West,  or  vice  versa. 

2.  Commodity  Adjustments  on  Unusual  Bases 

While,  in  a  broad  sense,  the  commodity  rates  from 
Southern  Territory  follow  very  closely  the  general 
relationship  between  points  of  origin  and  between  points 
of  destination  that  has  heretofore  been  described,  there 
are  some  notable  exceptions. 

(a)  On  Lumber 

The  real  beginning  of  the  development  of  the  vast 
yellow  pine  resources  of  the  South  had  its  inception 
only  thirty  years  ago,  at  a  time  when  the  forests  of 
Michigan   and   Wisconsin   were   supplying  the   bulk   of 


COMMODITY  ADJUSTMENTS  323 

the  lumber  used  for  common  purposes.  In  the  begin- 
ning, of  course,  the  cutting  of  the  timber  was  adjacent 
to  the  lines  of  railroad  which  were  then  in  existence, 
and  it  was  not  until  the  supply  was  exhausted  that 
branch  roads  for  further  development  were  built.  At 
this  time,  yellow  pine  lumber  was  not  generally  known 
in  the  North  and  East,  where  the  consumption  of  lum- 
ber was  the  greatest;  the  railroads  more  favorably 
situated  made  such  rates  as  seemed  best  suited  to  induce 
a  movement;  the  lines  further  removed  were  compelled 
to  make  somewhat  higher  rates  to  the  North  and  West, 
but  secured  some  advantages  to  the  East,  or  the  reverse, 
as  the  case  was.  The  rates  over  a  section  of  a  given 
road  would,  however,  be  "blanketed." 

After  the  southern  product  had  become  better  known 
in  the  consuming  territories,  the  stress  of  competition 
between  the  mills  in  the  various  sections  and  on  differ- 
ent railroads,  and  the  development  of  the  production 
in  Arkansas,  Louisiana,  and  Texas,  led  to  the  adoption 
of  a  more  coherent  and  satisfactory  system  of  rates. 

In  the  settlement  of  the  existing  rate  situation  in  the 
South,  so  far  as  the  destinations  beyond  the  Ohio  and 
Mississippi  rivers  are  concerned,  the  producing  terri- 
tory was  divided  into  groups  or  zones:  the  upper  one 
bounded  on  the  north  by  the  limit  of  growth  (roughly, 
near  the  southern  boundary  of  Tennessee)  and  extending 
as  far  south  as  Vicksburg,  Meridian,  Montgomery,  etc., 
and  from  the  Mississippi  River  to  the  Savannah  River 
and  the  sea;  south  of  this  group  there  was  another, 
also  extending  across  the  territory,  which  was  given  a 
rate  slightly  higher,  and  so  on.  All  producing  points 
in  each  of  these  zones  had  the  same  rates. 

In  the  competitive  situation,  the  pivotal  point  was 
Cairo,  111.,  which  was  the  main  basing  point  of  the 
southwestern  lines  in  making  the  rates  to  competitive 


324         FREIGHT  RATES :  SOUTHERN  TERRITORY 

territory  north.  From  the  upper  belt  described,  the 
rate  to  Cairo  was  the  same  as  from  the  corresponding 
section  west  of  the  Mississippi  River,  but  as  the  com- 
petition lessened  as  it  proceeded  east  from  Cairo, 
higher  rates  were  made  to  the  upper  Ohio  River  Cross- 
ings. The  rates  to  Evansville  are  higher  than  those 
to  Cairo;  the  rates  to  Louisville  are  higher  than  those 
to  Evansville;  while  the  highest  rates  of  all  are  found 
at  Cincinnati.  The  through  rates  to  points  beyond  the 
Ohio  River  are  made  on  the  lowest  combination  and 
apply  via  such  junctions  as  best  suit  the  physical 
requirements  of  the  lines  handling. 

To  Trunk  Line  Territory,  the  measure  of  the  rates 
was  worked  out  under  entirely  different  conditions. 
The  first  production  of  yellow  pine  lumber  and  timber 
which  sought  the  eastern  market  originated  not  very 
far  west  of  the  South  Atlantic  Ports  and  secured  water 
transportation  up  the  coast.  To  enable  mills  further 
in  the  interior  to  compete,  the  lines  having  long  hauls 
towards  the  Potomac  Gateways  had  to  make  compara- 
tively low  rates.  Thus,  mills  as  far  removed  as  the 
Alabama-Georgia  line  have  approximately  the  same 
adjustment  as  those  much  nearer  the  coast.  The  all- 
rail  rates  are  adjusted  to  be  somewhat  higher  than  the 
rail-and-water  rates,  and  the  relationship  between  the 
all-rail  rates  to  the  North  Atlantic  Ports  and  the  in- 
terior is  measured  by  the  differences  in  the  proportions 
north  of  the  gateways.  If,  for  instance,  the  proportion 
from  Richmond  to  an  interior  point  in  New  York  state 
is  3  cents  higher  than  the  proportion  to  New  York 
City,  the  through  rate  will  be  that  figure  higher  than 
the  rate  to  the  port. 

To  points  intermediate  to  the  border  gateways,  it 
had  been  the  practice  to  apply  rates  which  were  made 
sometimes  the  same  as  the  rates  to  the  gateway  beyond, 


COMMODITY  ADJUSTMENTS  825 

but  more  often  a  differential  greater,  or  on  the  lowest 
combination.  These  contraventions  of  the  long-and- 
short-haul  principle  have  all  been  placed  before  the 
Interstate  Commerce  Commission  and  some  have  been 
adjudicated.  The  principal  revision  required  was  to 
make  the  rates  to  points  intermediate  to  the  Ohio  River 
no  greater  than  those  to  the  more  distant  point. 

The  development  of  the  hardwood  section,  which, 
mainly,  is  in  Tennessee  and  Kentucky,  began  prior  to 
any  substantial  movement  of  the  yellow  pine  product. 
There  are  small  sections  of  hardwood  growth  at  various 
points  in  the  yellow  pine  region;  in  Mississippi,  how- 
ever, they  are  of  considerable  size,  but  the  development 
of  such  was  not  until  a  later  date  and  has  been  usually 
coincident  with  the  cutting  of  the  pine.  From  the 
greater  portion  of  the  yellow  pine  district  it  has  been 
the  practice  to  carry  the  same  rates  on  all  classes  of 
lumber  as  on  yellow  pine.  There  are  exceptions,  how- 
ever, where  the  rates  are  made  slight  differentials 
higher,  and  in  the  case  of  gum  and  Cottonwood  slight 
differentials  lower.  From  the  old  hardwood  sections 
of  Tennessee  and  Kentucl^,  the  rate  structure  has  been 
of  a  gradual  development  and,  of  course,  the  figures 
are  considerably  lower  than  from  the  section  further 
south.  These  rates  also  have  been,  or  are  being,  passed 
upon  by  the  Interstate  Commerce  Commission,  which 
has  in  view  the  requirement  to  conform  to  the  long-and- 
short-haul  principle  or  to  secure  authority  for  legal 
variance  therefrom. 

(&)  On  Cotton  Goods 

The  manufacture  of  cotton  in  the  South  is  today  one 
of  the  most  important  developments  of  southern  indus- 
try.    Prior  to  1880  there  were  but  few  mills   in  the 


326       FREIGHT  RATES :  SOUTHERN  TERRITORY 

South,  but  now  they  are  a  most  important  factor  in 
its  manufactures.  The  present-day  adjustment  takes 
into  account  the  old  dominance  of  the  New  England 
mills.  As  the  center  of  the  competition  in  the  Central 
West  was  Chicago,  the  same  rate  was  made  from  the 
mills  in  central  and  northern  Georgia  and  Alabama  to 
Chicago  as  from  Boston.  A  proportional  rate  to  the 
Ohio  River  was  arrived  at  by  deducting  from  the  Chi- 
cago rate  the  proportion  required  by  the  lines  north  of 
the  river.  This  proportional  rate  is  used  in  basing 
through  rates  to  all  points  north  of  the  Ohio  River. 
The  rate  to  the  Ohio  River  Crossings,  proper,  was  made 
by  using  the  same  rate  to  Cincinnati  as  from  Boston 
and  applying  it  also  to  the  other  cities.  The  rate  from 
the  same  section  to  the  East  was  fixed  as  low  as  could 
be  successfully  operated.  The  mills  in  the  Carolinas 
are  in  two  groups  and  carry  lesser  rates  to  the  East 
than  from  those  in  Georgia;  to  the  West  they  pay 
higher  rates  than  do  the  Georgia  mills. 

There  are  a  number  of  commodities  produced  or 
made  in  various  sections  of  the  South  which  have  rates 
made  to  suit  the  conditions  peculiar  to  each. 

(c)  On  Mica 

Mica  is  mined  in  a  comparatively  small  area  of  North 
Carolina,  and  rates  are  made  under  the  principle  of 
affording  a  free  movement. 

{d)  On  Furniture 

Furniture  from  the  great  manufacturing  section  of 
North  Carolina  is  given  rates,  in  all  directions,  to  enable 
a  free  movement  against  a  similar  production,  prin- 
cipally in  the  Grand  Rapids,  Mich.,  section.    Furniture 


COMMODITY  ADJUSTMENTS  327 

rates  from  a  number  of  other  points  in  the  South  where 
the  production  is  small,  comparatively  speaking,  are 
made  on  the  same  principle,  but  keeping  in  mind,  to 
a  considerable  extent,  the  dominating  influence  of  the 
rates  from  High  Point,  N.  C. 

(e)  On  Pig  Iron 

Pig  iron  rates  from  furnace  points  in  Alabama  and 
Tennessee  to  destinations  within  the  South  are  made 
as  low  as  a  commodity  of  this  sort  would  warrant.  To 
the  North  and  East,  where  much  the  greater  consump- 
tion of  southern  iron  is  found  and  where  the  great 
furnace  centers  of  the  country  are  located,  the  rates 
necessarily  have  to  be  adjusted  to  afford  as  free  a 
movement  into  that  territory  as  possible  considering 
the  keen  competition.  Comparing  the  rates  to  the 
North  and  into  the  interior  South  from  a  distance 
point  of  view,  it  would  seem  that  the  latter  are  fairly 
adjusted.  The  theory  here  is  to  admit  of  the  manu- 
facturers of  iron  competing  with  those  of  other  sections 
which  have  more  favorable  conditions. 

It  seems  unnecessary  to  describe  more  of  these  ad- 
justments, which  might  be  termed  isolated  ones,  because 
to  do  so  would  be  a  mere  repetition  of  facts. 


CHAPTER  XXIII 

the  long-and-short-haul  provision  of  the 

federal  la'w 

1.  Early  Violations 

There  is  perhaps  no  feature  of  the  Act  to  Regulate 
Commerce  that  has  been  the  occasion  of  so  much  litiga- 
tion as  the  fourth  section  thereof,^  which,  as  originally 
enacted  on  February  4,  1887,  provided,  in  part,  as  fol- 
lows : 

That  it  shall  be  unlawful  for  any  common  carrier  subject  to 
the  provisions  of  this  Act  to  charge  or  receive  any  greater 
compensation  in  the  aggregate  for  the  transportation  of  pas- 
sengers, or  of  like  kind  of  property,  under  substantially  sim- 
ilar circumstances  and  conditions,  for  a  shorter  than  for  a 
longer  distance  over  the  same  line  or  route  in  the  same  direc- 
tion, the  shorter  being  included  within  the  longer  distance. 

To  appreciate  the  necessity  of  this  legislation,  it 
becomes  necessary  to  give  a  brief  resume  of  the  con- 
ditions that  obtained  relative  to  this  feature  of  our 
commerce  prior  to  the  passage  of  the  Act. 

To  begin  with,  the  transportation  interests  prior  to 
this  time  had  not  been  welded  into  a  great  system  but 
were  composed  of  various  independent  units,  each  with 
a  differing  policy  or  interest  to  serve,  which  was  deemed 
by  it  as  paramount  to  all  others. 

Again,  by  far  the  greatest  amount  of  traffic  moved 
then  as  it  does  now  from  the  Middle  West  to  the 
Atlantic  Seaboard.     As  the  traffic  of  the  products  of 

'Reproduced  in  Appendix  A. 

328 


LONG-AND-SHORT-HAUL  CLAUSE  329 

the  mines,  of  the  forests,  and  of  the  farm  moved  in 
immense  volume,  all  lines  desired  to  enjoy  a  share  of 
this  trade  and  the  means  employed  in  some  cases  in 
obtaining  it  were  questionable,  to  say  the  least.  Secret 
rate-cutting  was  usually  employed  by  the  weaker  lines  to 
increase  their  share  of  tonnage  or  to  favor  a  particular 
shipper.  It  was  not  unnatural  for  the  trr.ffic  manager  of 
some  road,  therefore,  upon  learning  that  the  products  of 
a  particular  mill,  industry,  or  district  were  moving  en- 
tirely by  way  of  a  competing  line,  to  assume  that  his 
rival  was  not  adhering  to  the  agreed  rates  and  to  go 
''shopping"  on  the  account  of  his  ovm.  line,  offering  such 
inducements  as  were  necessary  to  divert  the  tralfic  to  his 
line.  The  policy,  however,  of  all  the  stronger  lines  in  the 
territory  was  to  meet  this  form  of  competition  by  open 
reductions,  which  meant  a  horizontal  lowering  of  all 
rates ;  that  is,  the  intermediate  non-competitive  points 
would  enjoy  the  same  rates  as  those  to  the  competitive 
point. 

That  this  condition  of  affairs  existed  was  not  attribu- 
table to  the  carriers  alone,  as  is  evidenced  by  the  fact 
that  many  of  the  large  industries,  packing  house  inter- 
ests, millers,  brewers,  iron  and  steel  mills,  etc.,  controlled 
such  a  volume  of  traffic  that  they  practically  announced 
the  rates  that  they  would  pay  and  the  rates  that  they 
would  not  pay  on  their  traffic.  Not  infrequently  these  in- 
dustries would  be  heavy  stockholders  in  a  transportation 
company  and  possibly  be  represented  on  its  directorate. 
Naturally,  under  such  a  state  of  affairs,  rate  wars  were 
of  frequent  occurrence  and  often  when  the  war  was  at 
its  height  the  shippers  found  that  they  could  ship  to 
New  York  from  Chicago  or  St.  Louis  for  less  than  they 
could  ship  over  the  same  road  to  Pittsburgh  or  Buffalo ; 
or,  in  the  case  of  rival  jobbers  buying  in  a  common 
market,  one  might  obtain  an  advantage  over  the  other 


330       FREIGHT  RATES :  SOUTHERN  TERRITORY 

by  obtaining  a  concession  of  10  or  15  cents  per  100 
pounds  on  the  commodity  dealt  with. 

The  wisdom  of  such  a  policy  is  probably  best  evi- 
denced by  the  number  of  railroads  in  this  countrj^  that 
went  into  bankruptcy  during  this  period.  Legitimate 
competition  has  been  styled  as  the  "life  of  trade,"  and 
rightly  so;  but  Avhen  competition  becomes  suicidal  in 
its  nature,  endangering  the  prosperity  of  our  country 
by  paralyzing  business  and  imperiling  the  investments 
of  our  people,  it  becomes  necessary  to  restrain  its 
influence  so  that  the  greatest  public  benefit  will  be  de- 
rived. Although  secret  rate-cutting  was  indulged  in  to 
some  extent  in  the  South,  it  was  not  nearly  as  extensively 
employed  as  in  other  sections  of  the  country ;  as  a  matter 
of  fact,  the  common-point  system  itself  caused  the  dissat- 
isfaction. It  was  difficult  to  explain  why  a  carrier  could 
bring  traffic  through  a  non-competitive  local  point  to  a 
further  distant  competitive  point  at  a  given  rate,  but  was 
unable  to  stop  the  freight  at  the  shorter-haul  point  \vith- 
out  making  a  higher  charge.  In  other  words,  the  effect 
that  water  and  market  competition  exerted  upon  rates 
was  not  apparent  to  the  lajoiian,  who  naturally  assumed 
that  if  the  carriers  made  a  rate  of  95  cents  from  Louis- 
ville to  Savannah,  they  were  practicing  a  rank  discrim- 
ination in  exacting  a  rate  sometimes  50  cents  higher  on 
traffic  which  was  not  only  intermediate  but  in  some  cases 
a  hundred  or  two  hundred  miles  nearer  the  originating 
point.  These  are  some  of  the  causes  which  led  to  the 
formulating  of  the  Act  to  Kegulate  Commerce. 

Considerable  stress  is  laid  upon  the  words  "under 
substantially  similar  circumstances  and  conditions"  as 
incorporated  in  the  original  statute,  for  this  in  itself 
gives  evidence  that  the  framers  of  the  law  had  in  mind 
that  there  might  be  circumstances  which  would  justify 
the  carrier  in  charging  less  for  the  long  than  for  the 


LONG-AND-SHORT-HAUL  CLAUSE  331 

short  haul.  As  before  stated,  the  rate  wars  had  the 
effect  of  sometimes  making  the  rates  to  the  seaboard 
less  than  the  rates  to  interior  points  removed  a  con- 
siderable distance  therefrom.  Consequently,  it  was  a 
perplexed,  oftentimes  a  wrathful,  patron  who  demanded 
to  know  why  he  was  charged  more  for  the  movement 
of  a  carload  of  produce  to  Utica,  N.  Y.,  than  for  a  ship- 
ment of  like  kind  to  the  seaboard,  although  the  car  for 
the  latter  point  passed  through  the  former  on  its  way 
east.  Similarly,  the  lines  serving  the  Ohio  River  from 
the  region  of  the  Great  Lakes,  when  called  upon  to 
meet  the  exceedingly  low  rates  to  the  Ohio  River 
Crossings,  forced  upon  them  by  competition,  did  not 
feel  warranted  in  reducing  their  rates  to  their  local 
stations  intermediate  to  the  terminal  points  involved, 
but  held  them  on  the  normal  basis,  although  they 
were  higher  than  the  rates  established  to  the  more 
distant  points. 

Instances  such  as  these,  however,  illustrate  traffic 
handled  under  substantially  the  same  circumstances 
and  conditions,  although  some  have  contended  that 
the  element  of  competition  between  carriers  of  like 
kinds  is  in  itself  a  dissimilar  circumstance  that  does 
not  have  to  be  considered  except  at  such  points  at 
which  it  exists.  However  that  may  be,  it  seems  that 
this  was  one  of  the  evils  toward  which  the  fourth 
section  of  the  Act  was  primarily  directed. 

Following  the  passage  of  the  Act,  the  carriers  in 
Official  Classification  Territory,  almost  without  excep- 
tion, adjusted  their  rates  to  conform  literally  to  the 
law;  as  far  as  rates  in  that  territory  are  concerned, 
very  few  violations  of  the  fourth  section  exist,  except 
in  the  case  of  some  of  the  north  and  south  lines  under 
the  percentage  adjustment  of  rates  to  and  from 
Trunk  Line  Territory,  of  which  the  Cincinnati,  Ham- 


332       FREIGHT  RATES :  SOUTHERN  TERRITORY 

ilton  &  Dayton  Railway  Company  may  be  given  as  an 
illustration.  Toledo,  Ohio,  the  northern  terminus  of 
this  line,  is  in  78  per  cent  territory,  while  Cincinnati, 
Ohio,  the  southern  terminus,  is  in  87  per  cent  terri- 
tory.- Under  the  percentage  system  of  making  rates 
between  Trunk  Line  and  New  England  territories  on 
the  one  hand  and  Central  Freight  Association  Terri- 
tory on  the  other  hand,  the  rates  from  87  per  cent 
territory  are  in  all  cases  higher  than  the  rates  from 
78  per  cent  territory,  and  if  the  traffic  of  this  line 
moved  to  the  East  in  all  cases  via  Toledo,  no  viola- 
tion of  the  long-and-short-haul  provision  of  the  Act 
would  occur.  Such,  however,  is  not  the  case,  as  this 
company  is  in  active  competition  with  the  direct  lines 
serving  Toledo  and  the  East  for  traffic  to  that  terri- 
tory, handling  the  business  in  some  cases  by  way 
of  Cincinnati,  Ohio,  in  connection  with  the  Chesa- 
peake &  Ohio  Railway  or  the  Norfolk  and  Western 
Railway.  Consequently,  when  the  business  is  so 
handled,  the  traffic  from  the  lower  rated  point,  i.  e., 
Toledo,  Ohio,  located  in  78  per  cent  territory,  is 
taken  through  a  higher  rated  point,  i.  e.,  Cincinnati, 
Ohio,  located  in  87  per  cent  territory. 

In  this  case,  however,  it  is  claimed  in  behalf  of  the 
Cincinnati,  Hamilton  &  Dayton  Railway  that  these 
rates  are  forced  upon  them  by  the  direct  lines  over 
which  they  have  no  control  and  that  they  have  no 
voice  in  making  the  rates.  Petitions  have  been  filed 
by  them  to  this  effect,  asking  relief  from  the  fourth  sec- 
tion of  the  Act. 

2.  Thkough  Traffic  v.  Local,  Traffic 

Another  feature  to  consider  is  that  by  far  the 
greatest   volume   of   tonnage   on   a    railroad   moves   to 

'See  Maps  3  and  4,  Atlas  of  Traffic  Maps. 


LONG-AND-SHORT-HAUL  CLAUSE  333 

competitive  points  and  that  the  local  traffic  contrasted 
therewith  is  but  a  relatively  small  percentage  of  the 
total.  It  has  been  stated  that  it  costs  the  carrier 
more  to  handle  the  traffic  of  the  small  local  stations 
than  it  does  to  handle  the  traffic  of  the  larger  com- 
petitive terminals.  For  example,  it  was  show^i  by- 
testimony  adduced  in  the  first  long-and-short-haul  inves- 
tigation, in  support  of  one  of  the  applications  presented, 
that  the  carrier  was  able  to  show  more  clearly  and  dis- 
tinctly than  is  commonly  possible  the  lower  cost  on  long- 
haul  freight.  It  claimed  that  the  through  business  on 
its  450  miles  of  road  was  transacted  by  different  trains 
from  the  local  stations  and  that  these  moved  much  more 
rapidly  and  carried  vastly  the  most  freight  to  the  train; 
also  that  the  number  of  men  was  much  less  in  propor- 
tion not  only  upon  the  trains  but  for  the  station  and 
terminal  service  and  consequently  all  items  of  expense 
were  much  smaller.  These  facts,  which  were  apparent 
to  the  customers  of  the  road,  together  with  the  pecu- 
liarly effective  water  competition,  which  affected  prin- 
cipally the  through  traffic,  influenced  intelligent  men 
doing  business  at  local  stations  to  admit,  in  giving  evi- 
dence, that  it  might  be  just  and  even  necessary  in  some 
cases  to  make  a  greater  charge  for  the  shorter  haul.^ 
The  late  Gen.  E.  P.  Alexander,  Associate  Editor  of  The 
Railroad  Gazette,  very  effectively  presented  the  prin- 
ciple of  the  long-and-short-haul  application  by  the  fol- 
lowing illustration  :* 

Buggies  are  manufactured  largely  in  Cincinnati,  and  still 
more  largely  in  Baltimore,  New  York  and  eastern  cities;  so 
that  as  Cincinnati  buggies  are  carried  into  territory  more 
cheaply  reached  from  the  east,  this  transportation — like  that 
of  coal  toward  Newcastle — becomes  less  and  less  valuable  as 

«1  I.  C.  C.  Rep.,  283. 

^Compendium  of  TransportcUion  Theories. 


334        FREmHT  BATES  :  SOUTHERN  TEKKITORY 

it  reaches  places  accessible  to  eastern  cities  by  cheaper  routes 
either  of  rail  or  water;  and  the  railroads  running  from  Cin- 
cinnati have  always  adjusted  their  rates  accordingly.  On  the 
rail  line,  for  instance,  extending  southeast  from  Cincinnati 
to  Charleston,  via  Chattanooga,  Atlanta  and  Augusta,  the  in- 
fluence of  eastern  buggies  was  felt  wherever  a  transportation 
line  from  the  east  came  in.  At  Chattanooga  it  was  of  slight 
consequence,  at  Atlanta  it  was  important,  at  Augusta  it  was 
of  controlling  force,  and  at  Charleston  it  was  overwhelming. 
The  rates  from  Cincinnati  increased  gradually  until  after 
passing  Atlanta  far  enough  to  be  affected  by  eastern  buggies 
coming  up  via  Augusta.  There  the  rate  reached  its  maximum, 
about  half  way  between  Atlanta  and  Augusta.  Thence  it  de- 
creased, and  was  the  same  at  Augusta  as  at  Atlanta,  and  at 
Charleston  it  was  still  lower. 


He  continued  by  giving  a  simple  illustration  making 
clear  the  essential  features  of  nearly  every  case  in  the 
United  States  where  competition  of  routes  leads  to 
lower  charges  upon  the  longer  hauls. 


LONG-AND-SHORT-HAUL  CLAUSE  336 

■  Imagine  four  cities,  N,  E,  S  and  W,  at  the  North,  East,  South 
and  West  points  of  any  closed  figure,  as  a  circle. 
Then  let  an  eastern  railroad  run  from  N  through  E  and  S 
to  W,  and  a  western  from  N  through  W  and  S  to  E.  There 
are  then  two  overlapping  routes  from  N  to  each  of  the  two 
other  cities,  an  eastern  and  a  western.  To  S  they  are  prac- 
tically of  equal  length,  but  to  E  the  eastern  is  much  the 
shorter,  and  to  W  the  western.  Let  90  be  a  reasonable  aver- 
age rate  from  N  to  E  or  W,  and  180  the  same  to  S;  or  one 
for  each  degree  of  the  circle  traversed. 

Now,  if  no  restriction  is  placed  on  competition,  the  eastern 
route  will  not  only  compete  with  the  western  at  S,  but  clear 
around  to  W;  and  while  it  could  not  hope  with  its  longer 
distance  to  do  a  very  large  share  of  the  business,  yet  it  might 
get  some  remunerative  employment  for  idle  cars  and  engines 
in  a  dull  season.  But  it  could  not  charge  more  than  90  for  the 
service,  perhaps  not  even  quite  so  much,  for  its  service  would 
be  much  slower  than  that  of  the  western  route,  let  us  say  87. 
Similarly,  too,  will  the  western  route  compete  for  freight  from 
N  to  E  through  S  at  87. 

Now  let  it  be  declared  illegal  to  charge  more  for  the  shorter 
haul  than  for  the  longer,  and  what  will  be  the  result  ? 

As  a  penalty  for  engaging  in  competitive  business  to  E  and 
W  each  road  must  reduce  its  rates  at  S  from  180  to  90  or  87, 
as  well  as  all  other  rates  at  intermediate  stations  which  ex- 
ceed 87.  Neither  road  could  afford  to  give  up  a  large  busi- 
ness at  average  rates  for  a  smaller  business  over  a  longer  line 
and  at  a  reduced  rate ;  so  it  would  simply  withdraw  from  the 
long  haul  business,  and  would  enjoy  a  monopoly  of  what  it 
had  the  short  haul  on.    *     *     * 

It  may  be  objected  that  no  two  single  roads  overlap  each 
other,  as  in  the  figure  suggested  above.  But  by  their  innumer- 
able connections  Avorking  with  them  as  through  lines,  nearly 
all  competing  lines  do  overlap  and  intersect  and  interlace  in 
even  a  far  more  complicated  manner. 

So  in  conclusion  it  may  be  stated  briefly  that  every  case 
of  competition  of  routes  has  its  essential  principles  perfectly 
illustrated  in  the  figure  suggested  above,  and  every  case  of 


336       FREIGHT  RATES :  SOUTHERN  TERRITORY 

competition  of  products  and  of  markets  has  its  principles  per- 
fectly illustrated  in  the  old  proverb  that  it  is  labor  lost  to 
carry  coals  to  Newcastle.     ♦     •     • 

While  the  carriers  in  Official  Classification  Territory 
attempted  to  conform  literally  to  the  requirements  of 
this  statute,  those  in  Southern  Territory  did  not,  alleg- 
ing a  dissimilarity  of  conditions  and  citing  the  competi- 
tion that  they  had  to  meet,  viz.,  that  of  the  ocean  lines 
serving  the  South  Atlantic  and  the  Gulf  ports  and  that 
of  the  lines  operating  upon  the  inland  waterways  over 
which  they  or  the  Interstate  Commerce  Commission  had 
no  control,  and  whose  rates  were  and  are  much  less 
than  would  be  the  rates  from  the  rail  lines  if  they  were 
not  called  upon  to  meet  the  competition. 

3.  The  Fiest  Legislation 

As  the  original  Act  provided  that  the  judgment  of  the 
carriers  in  respect  to  the  circumstances  and  conditions 
was  not  final,  it  was  subject  to  the  authority  of  the 
Interstate  Commerce  Commission  and  of  the  courts  to 
decide  whether  the  intent  of  the  statute  had  been  vio- 
lated or  not.  The  burden  of  the  proof  was  placed  upon 
the  carriers  to  justify  any  departure  from  the  literal 
application  of  the  fourth  section.  Consequently,  the 
first  case  of  much  note  before  the  Interstate  Commerce 
Commission  was  an  investigation  as  to  the  petition  of 
the  carriers  in  this  territory  for  relief  from  the  pro- 
visions of  the  Act.^  Exhaustive  testimony  was  taken  by 
it  at  Atlanta,  Ga.,  Mobile,  Ala.,  New  Orleans,  La.,  and 
Memphis,  Tenn.  Representatives  of  rail  lines,  steam- 
ship and  steamboat  companies,  commercial  plants  and 
industries,  boards  of  trade,  and  exchanges  of  various 

«1  I.  C.  C.  Rep.,  76,  291. 


LONG-AND-SHORT-HAUL  CLAUSE  337 

kinds  appeared  before  the  Commission  to  give  testi- 
mony. 

In  announcing  the  findings  of  the  Commission  in  this 
investigation,'^  the  Hon.  Thomas  M.  Cooley,  of  Michigan, 
Former  Chairman  of  the  Commission,  stated  as  follows : 

The  points  that  are  intended  to  be  decided  at  this  time  are 
as  follows: 

First.  That  the  prohibition  in  the  fourth  section  against 
a  greater  charge  for  a  shorter  than  for  a  longer  distance  over 
the  same  line,  in  the  same  direction,  the  shorter  being  in- 
cluded within  the  longer  distance,  as  qualified  therein,  is  lim- 
ited to  cases  in  which  the  circumstances  and  conditions  are 
substantially  similar. 

Second.  That  the  phrase  "under  substantially  similar  cir- 
cumstances and  conditions,"  in  the  fourth  section  is  used  in 
the  same  sense  as  in  the  second  section;  and  under  the  quali- 
fied form  of  the  prohibition  in  the  fourth  section,  carriers  are 
required  to  judge  in  the  first  instance  with  regard  to  the  sim- 
ilarity or  dissimilarity  of  the  circumstances  and  conditions 
that  forbid  or  permit  a  greater  charge  for  a  shorter  distance. 

Third.  That  the  judgment  of  carriers  in  respect  to  the  cir- 
cumstances and  conditions  is  not  final,  but  is  subject  to  the 
authority  of  the  Commission  and  of  the  courts,  to  decide 
whether  error  has  been  committed,  or  whether  the  statute  has 
been  violated.  And  in  case  of  complaint  for  violating  the 
fourth  section  of  the  Act,  the  burden  of  proof  is  on  the  car- 
rier to  justify  any  departure  from  the  general  rule  prescribed 
by  the  statute  by  showing  that  the  circumstances  and  condi- 
tions are  substantially  dissimilar. 

Fourth.  That  the  provisions  of  section  1,  requiring  charges 
to  be  reasonable  and  just,  and  of  section  2,  forbidding  unjust 
discrimination,  apply  when  exceptional  charges  are  made 
under  section  4  as  they  do  in  other  cases. 

Fifth,  That  the  existence  of  actual  competition  which  is 
of  controlling  force,  in  respect  to  traffic  important  in  amount, 
may  make  out  the  dissimilar  circumstances  and  conditions  en- 
titling the  carrier  to  charge  less  for  the  longer  than  for  the 
shorter  haul  over  the  same  line  in  the  same  direction,  the 
shorter  being  included  in  the  longer,  in  the  following  cases: 
1,  when  the  competition  is  with  carriers  by  water  which 
are  not  subject  to  the  provisions  of  the  statute;  2,  when  the 
competition  is  with  foreign  or  other  railroads  which  are  not 

«1  I.  C.  C.  Rep.,  291. 


338         FREIGHT  RATES :  SOUTHERN  TERRITORY 

subject  to  the  provisions  of  the  statute ;  3,  in  rare  and  pe- 
culiar cases  of  competition  between  railroads  which  are  sub- 
ject to  the  statute,  when  a  strict  application  of  the  general 
rule  of  the  statute  would  be  destructive  of  legitimate  com- 
petition. 

Sixth.  The  Commission  further  decides  that  when  a  greater 
charge  in  the  aggregate  is  made  for  the  transportation  of 
passengers  or  the  like  kind  of  property  for  a  shorter  than  for 
a  longer  distance  over  the  same  line  in  the  same  direction,  the 
shorter  being  included  in  the  longer  distance,  it  is  not  sufficient 
justification  therefore  that  the  traffic  which  is  subjected  to 
such  greater  charge  is  way  or  local  traffic,  and  that  which  is 
given  the  more  favorable  rates  is  not. 

Nor  is  it  sufficient  justification  for  such  greater  charge  that 
the  short  haul  traffic  is  more  expensive  to  the  carrier,  unless 
when  the  circumstances  are  such  as  to  make  it  exceptionally 
expensive,  or  the  long  haul  traffic  exceptionally  inexpensive, 
the  difference  being  extraordinary  and  susceptible  of  definite 
proof. 

Nor  that  the  lesser  charge  on  the  longer  haul  has  for  its  mo- 
tive the  encouragement  of  manufacturers  or  some  other 
branch  of  industry. 

Nor  that  it  is  designed  to  build  up  business  or  trade  cen- 
ters; nor  that  the  lesser  charge  on  the  longer  haul  is  merely 
a  continuation  of  the  favorable  rates  under  which  trade  cen- 
ters or  industrial  establishments  have  been  built  up. 

The  fact  that  long  haul  traffic  will  only  bear  certain  rates 
is  no  reason  for  carrying  it  for  less  than  cost  at  the  expense  of 
other  traffic. 

As  the  petitions  of  the  carriers  were  acted  upon 
individually,  the  Commission's  order,  in  so  far  as  the 
Louisville  &  Nashville  Railroad  is  concerned,  may  be 
taken  as  representative  of  the  policy  adopted  at  that 
time. 

The  order  for  temporary  relief  which  was  made  in  favor 
of  the  petitioner,  will  be  allowed  to  remain  in  force  until  the 
day  originally  limited  for  its  expiration ;  and  in  the  meantime 
its  officers  will  have  the  opportunity  to  make  thorough  re- 
vision of  its  freight  and  passenger  tariffs,  in  order  to  bring 
them  as  nearly  as  may  be  reasonably  feasible  into  harmony 
with  the  general  rule  of  the  statute  and  with  the  views  ex- 
pressed in  this  opinion.     That  they  may  be  brought  much 


bONG-AND-SHORT-HAUL  CLAUSE  9S9 

nearer  to  conformity  than  they  now  are  without  the  sacrifice 
of  any  substantial  interest,  we  have  very  little  question;  and 
as  business  adapts  itself  to  the  new  principle  established  by 
Congress,  it  will  no  doubt  be  found  that  exceptions  can  safely 
and  steadily  be  made  less  and  less  numerous.'^ 

As  has  been  illustrated  before,  there  are  very  few 
adjustments  in  the  South  which  conform  either  actually 
or  in  principle  to  tlie  long-and-short-haul  provision  of 
the  law.  Practically  all  of  the  southern  officials  at  the 
time  the  Act  was  passed  based  their  petitions  upon  the 
conclusion  that  competition  beyond  the  control  of 
any  one  of  them  formed  a  circumstance  or  condition 
which  warranted  a  departure  from  the  law  and  that 
the  higher  rates  to  the  intermediate  points  should  be 
adjudged  individually  under  the  provisions  of  the  law 
requiring  reasonableness  and  forbidding  undesirable 
discrimination  or  undue  or  unreasonable  preference  or 
advantage.  In  at  least  two  instances,  however,  this 
interpretation  was,  at  the  time,  not  accepted,  and  as  a 
consequence  the  rates  between  Cincinnati  and  Chat- 
tanooga over  the  short  line  and  between  Richmond  and 
Atlanta  over  the  short  line  were  revised  to  follow 
literally  the  fourth  section.  Later,  the  interpretation 
accepted  by  the  majority  of  the  officials  having  been 
justified  by  court  decisions,  no  further  attempt  was 
made  to  follow  the  accepted  policy  adopted  with  respect 
to  the  rates  mentioned,  although  it  may  be  said  that 
tliere  has  been  practically  no  advance  in  the  rates. 

4.  Conflict  With  Law 

Such  was  the  condition  of  affairs  until  Congress 
passed  an  amendment  to  this  section  of  the  Act  on  June 
18,   1910,   eliminating  the   words   **imder   substantially 

n  I.  C.  C.  Rep.,  290. 


340       FREIGHT  HATES:  SOUTHERN  TERRITORY 

similar  circumstances  and  conditions,"  and  thereby  in 
effect  requiring  the  railroads  literally  to  initiate  no 
higher  rates  under  any  circumstances  or  conditions  to 
an  intermediate  point  than  to  a  further  distant  point 
on  the  same  line  or  route  in  the  same  direction.  At  the 
same  time,  however,  Congress  very  wisely  vested  the 
Interstate  Commerce  Commission  with  authority  to 
grant  variations  from  the  principle  when,  in  the  discre- 
tion of  that  body,  such  might  be  justified. 

The  significance  of  the  striking  out  of  the  words  re- 
ferred to  may  best  be  expressed  in  the  following 
remarks  of  the  Interstate  Commerce  Commission. 

•  *  •  For  20  years  this  Commission  has  made  no  order 
of  consequence  under  that  section  which  could  be  enforced, 
and  this  because  of  the  existence  of  these  words.  Their  pres- 
ence has  rendered  futile  the  prohibition  of  the  section  and  has 
made  it  impossible  to  give  any  effect  to  the  proviso  which 
allowed  the  Commission  to  designate  the  instances  in  which 
the  rule  of  the  prohibition  might  be  departed  from. 

In  view  of  these  facts  what  was  probably  the  intention  of 
Congress  in  removing  that  phrase  from  the  statute?  It  is 
earnestly  contended  by  the  carriers  that  the  only  effect  was 
to  take  from  the  railway  the  power  of  initiative.  The  carrier 
can  no  longer  judge  in  the  first  instance  whether  it  may  dis- 
regard the  rule  of  that  section,  but  is  compelled  to  submit 
that  question  to  the  Commission.    *    *    • 

The  effect  of  the  present  section  is  certainly  to  require  car- 
riers to  first  obtain  from  the  Commission  leave  to  depart  from 
the  rule  of  that  section,  and  that  of  itself  is  a  most  significant 
and  important  thing.  There  is  certainly  a  wide  difference  be- 
tween the  situation  formerly,  when  some  complainant  must 
attack  the  existing  rate  and  make  good  by  evidence  his  com- 
plaint, and  now,  when  the  railroad  must  assume  the  burden 
of  its  justification.  It  is  a  matter  of  consequence  that  every 
discrimination  of  this  sort  must  be  brought  directly  to  the 
attention  of  the  Commission  and  passed  upon  by  that  body, 
but  we  think  that  something  beyond  this  was  in  the  legislative 
mind.    •    ♦    • 

It  was  the  manifest  intent  of  Congress  not  only  to  provide 
by  the  amendment  of  this  section  that  carriers  must  become 
the  advancing  party  in  justifying  this  particular  species  of 


LONG-AND-SHORT-HAUL  CLAUSE  341 

discrimination,  but  also  to  give  to  the  Commission  some  ef- 
fective power  to  deal  with  the  case  when  presented,     •     •     • 

Bearing  in  mind  the  authority  which  the  Commission  now 
administers  in  prescribing  a  reasonable  rate  and  in  declaring 
and  correcting  an  undue  preference,  it  seems  evident  that 
the  purpose  of  Congress  was  to  commit  to  this  body  the  duty 
of  determining  Avhether  if  the  carrier  was  permitted  to  charge 
a  higher  rate  at  the  intermediate  point  that  would  result  in 
a  violation  of  the  provisions  of  the  act.  But  in  so  doing  the 
Commission  cannot  act  arbitrarily.  It  must  investigate  each 
ease,  and  if  after  such  investigation  it  is  of  the  opinion  that 
a  departure  from  the  rule  of  the  fourth  section  would  not  re- 
sult in  unreasonable  rates  or  undue  discrimination  it  must 
permit  that  departure.  If,  upon  the  other  hand,  it  is  of  the 
contrary  opinion,  it  must  refuse  the  permission.  Such  is  the 
only  possible  construction  which  can  be  put  upon  this  sec- 
tion in  connection  with  the  entire  act,  and  if  any  doubt  as 
to  the  real  purpose  of  Congress  could  exist,  it  must  be  ef- 
fectively put  at  rest  by  an  examination  of  the  history  of  the 
passage  of  this  measure.    *    *    * 

We  hold  that  under  the  amended  section  it  is  the  duty  of 
the  Commission  to  investigate  each  application  made  by  a 
common  carrier  for  leave  to  depart  from  the  rule  of  the  sec- 
tion. If  we  are  of  the  opinion,  upon  a  view  of  the  entire  situa- 
tion, that  to  grant  the  application  will  not  result  in  unjust 
or  discriminatory  rates  and  practices,  then  it  should  be 
granted;  otherwise  it  should  be  denied;  and  the  Commission 
may,  if  in  its  opinion  an  unlimited  departure  from  the  rule 
of  the  section  ought  not  to  be  granted  but  that  a  limited  de- 
parture should  be,  prescribed  in  any  way  that  is  definite  and 
certain    the   extent   to   which   the   departure   may   be   made. 


»21  1.  C.  C.  Rep.,  409. 


CHAPTER  XXW 

THE  LONG-AND-SHORT-HAUL  PROVISION  OF  THE 
FEDERAIi  LAW— Contmued 

1.  Revised  Legislation 

Adopting  the  means  provided,  the  railroads  in  the 
South  jointly  and  severally  filed  petitions  with  the  Inter- 
state Commerce  Commission,  asking  for  relief  under 
the  revised  fourth  section  and  for  authority  to  continue 
their  existing  bases  and  adjustments. 

Concerning  the  greater  portion  of  the  territory  and 
much  the  greater  portion  of  the  traffic  involved,  the 
Commission  held  lengthy  hearings,  taking  all  the  evi- 
dence to  be  offered  both  by  the  railroads  and  by  the 
interested  public;  the  cases  were  then  briefed  and 
argued.  The  facts  and  arguments  brought  forward 
to  sustain  the  applications  for  relief  and  the  principles 
which  justified  the  granting  of  the  applications  can  only 
be  described  in  outline  because  of  lack  of  space. 

The  subject  matter  naturally  falls  into  two  grand 
divisions:  (1)  The  rules  of  law  that  were  sought  to 
be  recognized  and  applied  and  (2)  the  facts  and  the 
arg-uments  on  the  facts. 

(a)  The  Rules  of  Law 

The  rules  of  law  were  founded  partly  on  common-law 
principles,  but  chiefly  on  the  construction  placed  by  the 
Supreme  Court  upon  the  fourth  section  of  the  original 

342 


LONG-AND-SHORT-HAUL  CLAUSE  343 

Act  and  by  the  Commerce  Court  on  the  amended  fourth 
section. 

1.  Substantial  dissimilarity  of  circumstances  and 
conditions  may  justify  common  carriers  in  charging 
greater  compensation  for  the  transportation  of  like 
kinds  of  property  for  a  shorter  than  for  a  longer  dis- 
tance over  the  same  line.^ 

2.  Competition  is  one  of  the  most  obvious  and 
effective  circumstances  that  make  the  conditions  under 
which  a  long  and  a  short  haul  is  performed  substantially 
dissimilar,  and  as  such  must  have  been  in  the  contem- 
plation of  Congress  in  the  passage  of  the  Act  to  Regu- 
late Commerce.^ 

The  settled  construction  of  the  Interstate  Commerce  Act 
allows  carriers  to  charge  the  lesser  rate  for  the  longer  than 
for  the  shorter  distance,  if  at  the  further  point  the  lesser  rate 
is  justified  by  a  substantial  dissimilarity  of  circumstances  and 
conditions  there  prevailing,  consequent  upon  real  competi- 
tion. ^ 

3.  The  materiality  of  competition  arising  from 
carriers  who  are  subject  to  the  Act  to  Regulate  Com- 
merce may  be  considered;  likewise,  competition  not 
originating  at  the  initial  point  of  the  trafific* 

What  was  decided  in  the  previous  cases  was  that  under  the 
fourth  section  of  the  Act  substantial  competition  which  ma- 
terially affects  transportation  and  rates  might  under  the  stat- 
ute be  competent  to  produce  dissimilarity'  of  circumstances  and 
conditions  to  be  taken  into  consideration  by  the  carrier  in 

II.  C.  C.  V.  •Alabama,  etc..  R.  R.  Co.,  168  U.  S.,  144,  170;  I.  C.  C.  v. 
Louisville,  etc.,  R.  R.  Co.,  190  U.  S.,  273;  Texas,  etc.,  R.  R.  Co.  v.  I.  C.  C, 
162  U.  S.,  197,  220. 

21.  C.  C.  V.  Alabama,  etc.,  R.  R.  Co.,  168  U.  S.,  144,  164;  42  L.  Ed..  414; 
I.  C.  C.  V.  Louisville,  etc..  R.  R.  Co.,  190  U.  S..  273;  47  L.  Ed.,  1047;  Texas, 
etc.,  R.  R.  Co.  V.  I.  C.  C,  162  U.  S.,  197;  40  L.  Ed.,  940;  Louisville,  etc., 
R.  R.  Co.  V.  Behlmer,  175  U.  S.,  648,  654,  655,  667;  44  L.  Ed.,  309;  East 
Tenne-ssee.  etc..  R.  R.  Co.  v.  I.  C.  C,  181  U.  S.,  1,  12;  45  L.  Ed.,  719. 

n.  C.  C.  V.  Louisville,  etc..  R.  R.  Co.,  190  IT.  S.,  273,  284;  47  L.  Ed.,  1047. 

^Louisville,  etc.,  R.  R.  Co.  v.  Behlmer,  175  U.  S.,  648;  44  L.  Ed.,  309; 
I.  C.  R.  R.  Co.  V.  I.  C.  C,  206  U.  S.,  441,  457;  51  L.  Ed.,  1128. 


344       FREIGHT  RATES :  SOUTHERN  TERRITORY 

charging  a  greater  sum  lor  a  lesser  than  for  a  longer  haul. 
The  meaning  of  the  law  was  not  decided  to  be  that  one  kind 
of  competition  could  be  considered  and  not  another  kind,  but 
that  all  competition,  provided  it  possessed  the  attributes  of 
producing  a  substantial  and  material  effect  upon  traffic  and 
rate  making,  was  proper  under  the  statute  to  be  taken  into 
consideration.^ 

4.  The  competition  of  river  lines  of  transporta- 
tion may  be  taken  into  consideration. 

Competition  of  river  lines  of  transportation  is  a  factor  to 
be  considered  when  determining  whether  property  transported 
over  the  same  line  is  carried  **  under  substantially  similar  cir- 
cumstances and  conditions"  as  that  phrase  is  found  in  the 
fourth  section  of  the  Interstate  Commerce  Act.^ 

5.  The  Interstate  Commerce  Act  was  not  designed 
to  prevent  competition."^ 

6.  Differences  between  the  cost  of  conducting  the 
intermediate  local  traffic  and  the  through  business  may 
also  constitute  a  dissimilarity  of  circumstances  under 
the  fourth  section  of  the  Act  to  Regulate  Commerce. 

7.  The  denial  of  the  right  to  engage  in  competition 
at  the  further  distant  points  is  a  deprivation  of  a  right 
of  property  such  as  is  forbidden  by  Article  Five  of 
the  amendments  to  the  Constitution  of  the  United  States. 

8.  Unless  the  intermediate  rates  are  proved  to  be 
unreasonable  by  substantial  evidence,  the  Commission 
may  not  lawfully  require  them  to  be  reduced  by  denying 
an  application  for  relief  under  the  fourth  section  of 
the  Act. 

9.  To  require  a  carrier  either  to  reduce  its  inter- 
mediate rates  or  to  retire  from  the  long-haul  traffic  by 

^Louisville,  etc..  R.  R.  Co.  v.  Behlmer,  175  TJ.  S.,  648,  670;  44  L.  Ed.,  309. 

61.  C.  C.  V.  Alabama,  etc.,  R.  R.  Co.,  168  U.  S.,  144;  42  L.  Ed.,  414 
I.  C.  R.  R.  Co.  V.  I.  C.  C,  206  U.  S.,  441,  457;  51  L.  Ed.,  1128. 

^I.  C.  C.  V.  Alabama,  etc.,  R.  R.  Co..  162  U.  S..  144,  165;  42  L.  Ed.,  414 
I.  C.  C.  V.  Baltimore,  etc.,  R,  R.  Co.,  145  U.  S..  263;  36  L.  Ed.,  699;  Texas 
etc.,  R.  R.  Co.  V.  I.  C.  C,  162  U.  S..  197;  40  L.  Ed.,  940;  I.  C.  C.  v.  Alabama 
etc.,  R.  R.  Co.,  168  U.  S  ,  144;  42  L.  Ed.,  414. 


LONG-AND-SHORT-HAUL  CLAUSE  345 

denying  its  fourth  section  application  is  to  punish  it 
for  meeting  competition  at  the  longer  distant  points; 
it  was  lawful  to  meet  that  competition  and  such  a  denial, 
therefore,  really  imposes  a  penalty  for  an  act  which 
was  lawful  when  done;  this  is  forbidden  by  the  ninth 
and  tenth  sections  of  Article  One  of  the  Constitution 
of  the  United  States. 

10.  The  proviso  of  the  amended  fourth  section  au- 
thorizing the  Commission  to  grant  relief  in  special 
cases  is  mandatory  and  not  merely  discretionary,  and 
under  it  the  Commission  must,  as  a  matter  of  law,  grant 
relief  in  all  cases  where  it  is  affirmatively  shown  that 
the  lower  rates  to  the  longer  distant  points  are  neces- 
sitated by  competition ;  that  the  rates  to  the  intermediate 
points  are  just  and  reasonable  -within  the  purview  of 
the  first  section  of  the  Act  to  Regulate  Commerce ;  and 
that  the  intermediate  destinations  are  not  being  sub- 
jected to  any  undue  prejudice  in  violation  of  the  third 
section  of  that  Act.* 

(h)  Facts  Adduced  in  the  Case 

1.  The  facts  submitted  in  justification  of  the  exist- 
ing situation  at  the  long-haul  competitive  points  were 
related  to  (a)  the  historical  development  of  the  exist- 
ing adjustments;  (b)  the  present  competitive  situation: 
and  (c)  the  reasonableness  of  the  present  rates. 

(a)  The  location,  origin,  and  early  history  of  each 
city  was  shown,  and  the  causes  for  its  growth  and  de- 
velopment into  a  trade  center  were  analyzed  and 
described.  Chief  among  these  causes  at  most  of  the 
cities  dealt  with  were  their  naturally  advantageous 
locations  on  navigable  waterways  and  the  consequent 

•Atchison,  Topeka  &  Santa  Fe  Ry.  Co.,  et  al.,  v.  United  States,  191  Fed 
856,  Commerce  Court. 


346        FREIGHT  RATES :  SOUTHERN  TERRITORY 

relatively  low  transportation  charges  they  were  able  to 
obtain  long  before  there  were  any  railroads  at  all.  The 
location  of  these  cities  always  had  given  them  lower 
freight  rates  than  the  inland  intermediate  towns,  and 
the  railroads  had  simply  recognized  and  continued  a 
system  of  transportation  charges  that  was  already  in 
existence  when  they  were  constructed  and  that  they 
were  powerless  substantially  to  modify  or  control. 

It  was  shown  that  other  cities  owed  their  low  rates  to 
long  years  of  strife  and  competition  between  numerous 
rival  railroads  coming  in  from  every  direction.  Still 
other  places  have  received  low  rates  by  the  policy  of 
some  one  railroad  establishing  a  distributing  center  on 
its  lines  in  order  to  compete  for  the  freight  in  the  sur- 
rounding country  with  some  jobbing  center  on  another 
road  which,  through  natural  and  proper  conditions, 
had  been  able  to  induce  or  force  a  low  level  of  rates 
for  itself.  Others  owed  their  position,  either  directly 
or  indirectly,  to  decisions  of  the  Interstate  Commerce 
Commission.  In  every  instance,  the  facts  were  care- 
fully set  forth,  the  history  of  the  rate  adjustments  them- 
selves were  carefully  traced  and  fully  presented,  and 
the  changes  in  specific  rates  were  given  for  as  far  back 
as  the  records  would  permit. 

(b)  The  railroads  and  the  water  lines,  if  any,  serv- 
ing each  city  were  shown.  The  actual  or  the  potential 
water  competition,  if  any,  was  described.  Exhibits 
were  filed  showing  the  names  of  the  railroads  composing 
the  routes  and  the  number  of  routes  competing  from 
each  point  of  origin  and  from  each  general  section  to 
each  competitive  destination.  At  points  located  on 
navigable  waterways  the  amount  of  traffic  handled  by 
water  carriers  to  such  points  for  a  representative  period 
was  shown.  The  practicability,  or  otherwise,  of  ad- 
vancing  the   rates   to    each    of   the   water   competitive 


LONG-AND-SHORT-HAUL  CLAUSE  »47 

points  was  fully  dealt  with.  The  dissimilarity  between 
the  conditions  under  which  traffic  is  transported  from 
various  points  of  origin  to  various  competitive  destina- 
tions and  the  conditions  under  which  traffic  is  handled 
to  the  intermediate  local  stations  was  emphasized  and 
described;  this  dissimilarity,  in  most  instances,  arises 
from  the  presence  at  the  longer-haul  points  of  actual 
controlling  competition  that  does  not  exist  at  the  inter- 
mediate stations. 

It  was  also  testified  that  the  longer-haul  rates 
were  in  no  case  made  less  than  was  required  by 
the  competitive  conditions  existing  at  the  particular 
destination  and  that  the  carriers  had  never  voluntarily 
or  arbitrarily  created  any  of  the  cities  as  basing  points 
or  trade  centers  for  the  mere  purpose  of  preferring 
them  to  other  places,  but  each  of  them  had  become 
such  owing  either  to  its  location  on  navigable  streams 
or  on  two  or  more  competing  railroads  serving  different 
sections,  or  because  of  some  exceptionally  strong  com- 
petitive condition. 

(c)  Comprehensive  evidence  was  submitted  to  prove 
that  the  rates  to  each  of  the  further  distant  competitive 
points  dealt  with  are  unusually  and  abnormally  low, 
having  been  made  so  by  competition.  This  was  sought 
to  be  demonstrated  (1)  by  comparisons  with  numerous 
other  rates  for  similar  distances  in  the  same  section 
of  the  country  and  considered  to  be  reasonable  in  the 
absence  of  competition;  (2)  by  comparisons,  in  some 
cases,  with  other  competitive  rates;  (3)  by  comparisons 
with  higher  rates  formerly  in  effect;  and  (4)  by  com- 
parisons with  local  scales  or  lowest  combination  rates 
such  as  would  have  been  charged  to  each  destination  in 
the  absence  of  competition  and  which  would  have  been 
considered  as  entirely  reasonable  were  it  not  for  the 
eompetition. 


348       FREIGHT  RATES :  SOUTHERN  TERRITORY 

The  fact  that  these  longer-haul  rates  are  unreason- 
ably low  having  been  demonstrated,  it  was  argued  that 
such  rates  afford  no  just  measure  of  the  reasonableness 
of  the  intermediate  rates  and  that  the  carriers  ought  not 
to  be  required  to  accept  them  at  the  intermediate  points. 
It  was  urged  that  competition,  actual  or  potential,  bona 
fide  and  lawful,  was  the  sole  reason  for  the  relatively 
low  rates  in  effect  at  the  further  distant  points;  also, 
that  the  suggestion  that  the  rates  to  the  further  distant 
points  are  not  competitive  rates  because  they  are  made 
the  same  by  all  competing  railroads  was  unfounded  in 
fact  and  fallacious  in  theory.  The  suggestion  that 
since  the  petitioning  railroads  have  freely  elected  to 
compete  at  the  further  distant  points,  the  lower  rates 
to  such  points  were  voluntarily  made  and  are  there- 
fore not  justified  or  compelled  by  competition,  it  was 
shown,  was  equally  erroneous  and  fallacious. 

Elaborate  arguments  were  submitted  in  favor  of 
allowing  the  carriers  to  meet  water  competition,  market 
competition,  and  competition  of  other  railroads,  as  well 
as  in  favor  of  the  contention  that  it  is  to  the  public 
interest  to  allow  the  carriers  to  continue  the  relatively 
low  rates  and  the  departures  from  the  long-and-short- 
haul  rule  covered  by  the  petitions  under  consideration. 
This  argument,  in  turn,  was  supported  by  showing  what 
the  present  public  policy  of  the  southern  states  is  as 
to  that  matter,  and  also  by  showing  that  the  present 
policy  of  the  United  States  is  in  favor  of  free  competi- 
tion, such  being  deduced  from  the  various  national  laws, 
from  the  anti-trust  laws,  and  from  the  Act  to  Regulate 
Commerce  itself. 

2.  Evidence  dealing  with  the  charges  to  the  inter- 
mediate points  included  facts  relating  to  (a)  the  history 
and  the  basis  of  the  intermediate  rates;  (b)  their  rea- 
sonableness, per  se;   (c)   their  relative  reasonableness; 


LONG-AND-SHORT-HALTL  CLAUSE  U9 

(d)  the  relative  higher  cost  of  handling  the  intermediate 
local  traffic;  (e)  the  effect  of  a  denial  of  the  relief  asked 
for  upon  the  intermediate  rates  and  revenues  of  the 
petitioning  carriers;  (f)  the  increasing  costs  of  opera- 
tion and  the  inability  of  the  petitioning  carriers  to 
sustain  any  substantial  reduction  in  their  rates  and 
revenues;  and  (g)  certain  collateral  features, 

(a)  The  existing  policy  of  fixing  rates  to  local  sta- 
tions in  the  South — that  is,  on  a  progressive  mileage 
scale,  but  not  in  excess  of  the  lowest  combination  for 
one-line  hauls  and  on  the  basis  of  the  lowest  combina- 
tion for  hauls  over  two  or  more  lines — was  elaborately 
discussed  and  described,  both  from  the  historical  and 
from  the  practical  standpoint.  The  genesis  of  this 
method  of  rate  adjustment  was  shown  and  also  its 
gradual  logical  development.  The  fact  that  it  is  today 
logically  and  historically  connected  with,  and  the  out- 
growth of,  the  earliest  practices  of  transportation  com- 
panies of  various  kinds  was  strongly  emphasized. 

The  fact  that  the  local  scales  which  formed  the  ground 
work  of  the  existing  intermediate  rates  are  themselves 
just  and  reasonable  charges  from  the  standpoint  of  the 
public  (many  of  them  being  fixed  by  state  commissions) 
was  sought  to  be  demonstrated.  On  argument  it  was 
urged  that  as  a  matter  of  law  a  railroad  handling 
traffic,  say,  from  Atlanta,  Ga.,  has  a  right  to  charge 
the  same  rate  therefrom  on  traffic  originating  beyond 
Atlanta  and  delivered  to  it  by  a  connecting  line  as  it 
charges  on  shipments  from  Atlanta,  proper,  and  that 
the  exercise  of  this  right  is  chiefly  responsible  for  the 
present  lowest-combination  basis  prevailing  in  the 
South;  hence,  that  this  basis  is  itself  sanctioned  by 
law.  Again,  it  was  pointed  out  that  the  use  of  this 
lowest-combination  basis  gives  the  non-competitive 
points  all  the  benefit  of  the  competition  at  the  common 


350        KEEIGHT  RATES :  SOUTHERN  TERRITORY 

points  to  which  their  location  entitles  them  and  fre- 
quently results  in  giving  them  lower  rates  than  they 
would  otherwise  receive. 

Numerous  decisions  of  the  Supreme  Court  and 
of  the  lower  federal  courts  were  cited,  to  tho 
point  that  the  combination  basis  is  lawful  and 
is  not  as  a  basis  condemned  by  any  of  the  provi- 
sions of  the  Act  to  Kegulate  Commerce.  Specifically, 
it  was  pointed  out  that  in  the  LaGrange  case'-*  the  Su- 
preme Court  upheld  and  approved  particularly  the 
combination  basis.  It  was  said  in  so  many  words  that 
such  neither  resulted  in  unreasonable  rates  to  LaGrange 
under  the  first  section  of  the  Act,  nor  in  an  undue 
prejudice  against  LaGrange  in  violation  of  the  third 
section  of  the  Act. 

(b)  Elaborate  testimony  was  presented  in  order  to 
demonstrate  that,  in  comparison  with  rates  usually  and 
normally  charged  in  the  South  for  similar  hauls  under 
like  circumstances,  the  specific  intermediate  rates  dealt 
with  in  these  particular  proceedings  were  just  and 
reasonable  in  and  of  themselves. 

On  argument  it  was  pointed  out  that  there  is  a  pre- 
sumption of  law,  as  well  as  of  fact,  that  the  inter- 
mediate rates  are  just  and  reasonable  and  that  no  evi- 
dence at  all  had  been  introduced  to  overcome  this 
presumption;  hence,  it  was  urged  that  the  mere  fact 
that  lower  rates  happen  to  be  in  force  to  certain 
further  distant  competitive  points  could  not  lawfully 
be  held  to  prove  the  unreasonableness  of  the  higher 
intermediate  rates;  many  court  decisions  so  holding 
were  cited  in  support. 

(c)  It  ha\dng  been  affirmatively  shown  (1)  that  the 
intermediate  rates  were  reasonable,  (2)  that  the  further 
distant  rates,  although  lower,  were  compelled  by  actual 

n90  U.  S.  273. 


LONG-AND-SHOKT-HAUL  CLAUSE  351 

competitive  circumstances  which  exist  at  the  latter  but 
not  at  the  former  places,  and  (3)  that  the  preference 
to  the  further  distant  points  was  not  the  result  of 
any  wrongful  or  voluntary  act  on  the  part  of  the 
carriers,  it  was  argued,  as  a  matter  of  law,  that  it  fol- 
lowed that  the  existing  rate  situation  does  not  subject 
the  intermediate  points  to  any  undue  or  unlawful 
prejudice  or  disadvantage  in  violation  of  the  third 
section  of  the  Commerce  Act;  various  decisions  of  the 
Supreme  Court  and  of  the  lower  federal  courts  so 
holding   were   adduced   in    support   of   the   contention. 

Very  full  evidence  was  submitted  which  demonbtrated 
that  the  existing  disparities  between  the  rates  to  the 
intermediate  points  and  those  to  the  further  distant 
competitive  points  are  never  greater,  and  in  most 
instances  lower,  than  those  in  effect  from  the  longer- 
haul  points  back  to  the  intermediate  destinations,  the 
result  being  that  merchants  at  the  intermediate  points 
can  buy  from  primary  markets  and  sell  in  their  own 
towns  and  vicinity  in  competition  with  the  merchants 
at  the  competitive  trade  centers.  In  addition,  it  was 
proved  that  the  intermediate  towns  and  the  inter- 
mediate territories  have  been  and  are  increasingly 
prosperous  under  the  existing  adjustments. 

On  these  facts  it  was  urged,  on  authority  of  the  Com- 
merce Court's  decision  in  the  intermountain  cases,  that 
the  charging  of  lower  rates  to  the  longer-haul  points 
did  not  subject  the  intermediate  destinations  to  any  un- 
lawful disadvantage. 

(d)  The  evidence  showing  the  relatively  higher  cost 
of  handling  traffic  to  the  intermediate  local  station  than 
to  a  further  distant  competitive  point  was  stated  in 
detail,  being  supported  by  the  facts  adduced  by  certain 
actual  tests  that  had  been  conducted  for  the  purpose 
and  by  analysis  of  these  tests. 


352       FREIGHT  KATES:  SOUTHERN  TERRITORY 

On  argument  it  was  urged  that  the  cost  differences 
would  warrant  the  Interstate  Coininerce  Commission  ii. 
lawfully  differentiating  the  rates. 

(e)  It  was  shown  that  the  losses  in  net  revenue  to 
which  the  southern  carriers  will  be  subjected  if  their 
petitions  for  relief  be  denied  and  they  are  required  to 
apply  the  existing  long-haul  competitive  rates  at  all 
intermediate  points  as  a  maximum  would  be,  approxi- 
mately, $16,000,000  per  annum.  It  was  urged  that  for 
this  reason  alone  the  applications  for  relief  ought  not 
to  be  denied,  as  the  railroads  of  the  South  are  unable 
to  sustain  any  such  enormous  depletion  of  revenues. 

(f)  The  railroads  filed  elaborate  statements  showing 
the  increased  costs  of  operation  in  all  phases,  includ- 
ing increased  taxation.  It  was  demonstrated  that  these 
increases  had  grown  out  of  all  proportion  to  the  in- 
crease in  revenues  and  that,  as  they  have  not  been  here- 
tofore offset  by  any  substantial  increases  in  freight 
rates,  the  conclusion  should  be  drawn  that  any  sub- 
stantial reduction  in  revenues  consequent  upon  the  en- 
forcement of  the  long-and-short-haul  rule  would  result 
in  disaster  to  the  southern  carriers.  Certain  of  the 
carriers  were  able  to  demonstrate  that  they  are  not 
now,  even  under  the  present  relative  adjustment  of 
rates,  earning  a  fair  or  just  return. 

(g)  Logical  reasons  were  given  for  the  lack  of  uni- 
formity in  the  local  mileage  scales,  why  the  practice  of 
the  northern  and  eastern  railroads  in  the  matter  of  the 
long-and-short-haul  rule  should  not  control  the  rates  or 
the  practices  of  the  southern  railroads,  and  why  the 
intermediate  rates  should  not  be  made  a  percentage  of 
the  further  distant  rates. 

The  plea  of  the  southern  railroads  may  be  summed 
up  by  quoting  from  the  brief  of  one  of  the  railroads. 


LONG-AND-SHORT-HAUL  CLAUSE  353 

To  have  a  vast  system  of  rates,  such  as  the  Southern  rate 
fabric,  suddenly  and  utterly  all  altered;  to  have  the  system 
of  rates  in  use  and  operation  from  the  Mississippi  to  the  Coast 
and  the  Ohio  to  the  Gulf,  a  system  which  has  resulted  from 
fifty  years  of  strife  and  competition  and  compromise  among 
the  Southern  railroad  companies,  the  result  of  the  best 
thought  and  labor  of  many  of  the  greatest  railroad  men  the 
country  has  produced,  a  system  which  has  given,  and  is  giving, 
general  satisfaction,  that  is  eminently  practical,  and  entirely 
lawful — to  have  all  this  shattered  at  one  blow  into  wreck  and 
dissolution,  is  no  small  matter.  To  revolutionize  the  long-es- 
tablished business  conditions  of  the  South,  and  the  channels 
of  trade  of  the  South,  is  an  equally  important  thing.  And  to 
force  such  radical  reductions  in  the  rates  and  revenues  upon 
the  Southern  railroad  companies  as  will  probably  bankrupt 
some  of  them,  and  inevitably  materially  injure  all  of  them, 
is  of  still  greater  magnitude.  Yet  all  of  these  will  undoubt- 
edly result  from  a  literal  enforcement  of  the  long  and  short 
haul  rule  of  the  fourth  section  of  the  Act  to  Regulate  Com- 
merce. 

Therefore,  because  the  present  system  of  rate  adjustment 
in  the  South  is  beneficial  and  satisfactory,  alike  to  the  carriers, 
and  the  public,  because  under  the  existing  rate  schedules,  the 
intermediate  non-competitive  points  are  not  subjected  to  un- 
just or  unreasonable  rates,  or  to  undue  or  unreasonable  preju- 
dice or  disadvantage,  because  the  lower  rates  in  force  at  the 
further  distant  competitive  points  have  resulted  solely  from 
competition,  and  are  still  necessary  because  of  competition, 
because  Congress  must  have  intended  that  the  Commission 
should  give  the  carriers  relief  from  the  operation  of  the  long 
and  short  haul  rule  in  just  such  cases  as  are  presented  and 
discussed  in  this  argument,  we  respectfully  and  earnestly  sub- 
mit that  our  applications  for  such  relief  as  to  those  cases 
should  be,  and  of  right  ought  to  be,  granted  by  this  Honorable 
Commission. 

2.    The  1914  Decision 

After  reviewing  the  voluminous  evidence  and  testi- 
mony introduced  in  this  case,  the  Interstate  Commerce 
Commission  announced  its  decision  on  April  13,  1914,^® 
and  stated,  in  part,  as  follows: 

»«30  I.  C.  C.  R«p.,  153-336, 


354       FREIGHT  RATES:  SOUTHERN  TERRITORY 

In  many  situations  we  have  found  the  rates  to  the  more 
distant  points  justified  by  the  competition  there  existing  and 
the  rates  to  intermediate  points  bearing  reasonable  compari- 
sons with  other  rates  made  for  like  distances  in  the  same  ter- 
ritory under  fairly  similar  conditions.  In  the  absence  of  com- 
plaint with  reference  to  the  rates  to  such  intermediate  points, 
we  shall  permit  for  the  present  the  continuance  of  the  lower 
rates  to  the  more  distant  points  and  the  present  higher  rates  to 
the  intermediate  points.  This,  however,  must  not  be  construed 
as  a  finding  that  these  rates  to  the  intermediate  points  are 
just  and  reasonable.  In  other  situations  we  have  found  the 
rates  to  more  distant  points  justified  by  competition  there  ex- 
isting, and  the  rates  to  intermediate  points  not  bearing  rea- 
sonable comparisons  with  other  rates  for  like  distances  in  the 
same  general  territory.  In  such  cases  we  should  permit  the 
continuance  of  the  lower  rates  to  more  distant  points  and 
higher  rates  to  intermediate  points,  provided  the  rates  to  in- 
termediate points  do  not  exceed  the  scale  of  rates  hereinafter 
named.^^  This  scale  of  rates  is  derived  from  an  average  of 
many  rates  made  to  noncompetitive  points  in  the  same  gen- 
eral territory.  The  Commission  does  not  express  any  opinion 
with  reference  to  the  reasonableness  of  such  rates  as  may  be 
established  to  intermediate  points  in  accordance  with  their 
findings  in  this  case.  Both  the  rates  established  and  the  rates 
continued  to  intermediate  points  in  the  situations  herein  de- 
scribed are  subject  to  complaint,  investigation,  and  correction 
if  in  violation  of  any  provision  of  the  act.     •    •     • 

An  investigation  was  carried  on  and  testimony  was  devel- 
oped in  connection  with  this  case,  for  the  purpose  of  ascer- 
taining the  effect  upon  the  revenues  of  the  carriers  in  south- 
eastern territory  of  an  absolutely  rigid  enforcement  of  the 
long-and-short-haul  clause  of  the  fourth  section  accomplished 
by  reductions  in  rates  to  intermediate  points  and  without  any 
increase  in  rates  to  long-distance  points  now  taking  lower 
rates.  Thirty-three  railway  systems,  operating  upward  of 
29,000  miles  of  railway,  and  three  steamship  companies  joined 
in  a  check  concerning  all  freight  traffic  that  moved  from,  to, 
or  between  points  in  this  territory  during  certain  respective 
periods.    •    •    • 

The  periods  selected  were  the  first  seven  days  of  December, 
1910,  and  the  first  seven  days  of  March,  June,  and  September, 
respectively,  1911.  The  purpose  of  the  check  was  to  deter- 
mine— 

"See  Table  A,  page  371. 


LONG-AND-SHOfiT-HAUL  CLAUSE  356 

Firsto  The  actual  charges  on  the  traflSc  that  moved  during 
these  periods  at  the  rates  effective  June  1, 1912. 

Second.  The  charges  that  would  have  accrued  on  such  traffic 
had  the  lowest  rate  applicable  on  such  shipments  to  any  more 
distant  point  been  applied. 

Third.  The  difference  between  the  charges  which  actually 
accrued  and  those  which  would  have  accrued  under  the  lower 
rates  as  maxima. 

The  differences  so  found  on  actual  shipments  moving  during 
the  28  days  taken  were  summarized  and  the  result  multiplied 
by  13  to  obtain  the  approximate  reduction  in  revenue  for  one 
year  on  all  these  lines  if  such  reductions  were  made  at  the  in- 
termediate points.  The  reduction  in  revenue  for  one  year,  as 
ascertained  by  this  check  amounted  to  $12,869,727.81.  The 
gross  freight  revenue  of  all  the  lines  that  participated  in  the 
check,  for  the  fiscal  year  ended  June  30, 1911,  was  $175,936,358. 

The  foregoing  does  not  include  estimated  losses  on  a  large 
number  of  small  lines  resulting  from  the  application  of  the 
long-and-short-haul  clause  rule  on  the  intraline  traffic;  that  is 
to  say,  traffic  which  was  not  interchanged  with  the  reporting 
lines,  but  which  moved  wholly  between  points  on  these  small 
nonreporting  lines.  These  smaller  lines  had  an  aggregate 
freight  revenue  during  the  same  year  of  $15,205,226.  The  total 
freight  revenue  of  these  reporting  and  small  lines  for  the  fiscal 
year  ended  June  30,  1911,  was  $191,141,585.  The  computed 
losses  were,  as  before  stated,  $12,869,727.81,  which  amounts  to 
6.73  per  cent  of  the  total  freight  earnings.     *    •     * 

The  total  estimated  losses  accruing  to  all  lines  in  southeast- 
ern territory,  brought  about  by  a  rigid  application  of  the  long- 
and-short-haul  clause  in  the  manner  above  defined,  would  have 
been  $16,026,512  for  the  year  considered.  There  are  very 
nearly  39,900  miles  of  railway  in  this  territory  operated  by  ap- 
proximately 140  different  companies.  For  the  fiscal  year  end- 
ing June  30,  1911,  the  records  of  78  of  these  companies  show  a 
surplus  varying  from  $300  to  $8,500,000.  Eight  of  the  systems 
show  a  surplus  of  more  than  $1,000,000 ;  16  show  a  surplus  of 
between  $100,000  and  $1,000,000 ;  25  show  a  surplus  of  between 
$10,000  and  $100,000;  and  29  show  a  surplus  of  less  than 
$10,000.  The  total  surplus  shown  is  $39,573,012  left  to  these 
various  companies  at  the  end  of  a  year  after  paying  operating 
expenses  and  fixed  charges.  Forty-five  show  deficits  varying 
from  $500  to  $1,000,000  in  amount  and  aggregating  $2,878,381. 

"While  the  check  as  made  showed  without  doubt  the  approxi- 
mate loss  to  all  of  these  lines  that  would  result  from  the  appli- 
eation  of  the  long-and-short-haul  clause   in   the   manner   as- 


356       FKEIGHT  HATES:  SOUTHERN  TERRITORY 

sumed,  the  check  did  not  show  and  could  not  show  the  lossei 
accruing  to  each  particular  Bystcra.  If  it  be  assumed,  how- 
ever, that  the  losses  as  above  computed  would  bring  about  a 
like  reduction  on  all  lines,  it  is  clear  that  the  surplus  on  the 
following-named  20  lines,  aggregating  3,345  miles  of  railroad, 
would  be  wiped  out.  The  surplus  shown  for  the  year  1911 
would  have  been  turned  into  a  deficit  on  the  Georgia  Rail- 
road; Louisville,  Henderson  &  St.  Louis  Railway;  Mobile  & 
Ohio  Railroad  and  Southern  Railway  in  Mississippi ;  New  Or- 
leans, Mobile  &  Chicago  Railroad :  Aberdeen  &  Asheboro  Rail- 
road; Atlantic  &  Western  Railroad;  Atlanta  &  St.  Andrews 
Bay  Railway;  Brinson  Railway;  Durham  &  South  Carolina 
Railroad;  Florida  East  Coast  Railway;  Georgia  Southwestern 
&  Gulf  Railroad ;  Gulf  Line  Railway ;  Georgia  &  Florida  Rail- 
way; New  Orleans  Great  Northern  Railroad;  Pickens  Rail- 
road; Raieigh  &  Charleston  Railroad;  Sumter  &  Choctaw  Rail- 
way ;  Sylvania  &  Girard  Railroad ;  Tampa  &  Jacksonville  Rail- 
way ;  and  Tallahassee  &  Montgomery  Railroad. 

In  addition  to  the  railroads  above  named  whose  surplus 
would  have  been  entirely  wiped  out  by  a  rigid  application  of 
the  long-and-short-haul  clause  as  above  described,  three  other 
lines,  with  an  aggregate  mileage  of  2,280  miles  of  railway, 
would  be  subjected  to  such  radical  reductions  as  to  reduce 
their  surplus  for  the  year  to  an  almost  negligible  quantity. 
Among  the  most  notable  of  such  lines  is  the  Central  of  Georgia 
Railway,  a  system  comprising  approximately  1,900  miles  of 
railway  and  reaching  to  almost  all  points  of  the  state  of 
Georgia,  with  its  northern  terminus  at  Chattanooga,  Tenn., 
western  termini  at  Montgomery  and  Birmingham,  Ala.,  and  its 
eastern  terminus  at  Savannah,  Ga. 

In  round  numbers,  it  may  be  stated  that  the  mileage  of  all 
roads  south  of  the  Ohio  River  and  east  of  the  Mississippi  River 
is  40,000  miles.  The  net  surplus  for  the  fiscal  year  1911  per 
mile  of  road  was  $917.  Were  the  long-and-short-haul  rule  rig- 
idly applied  in  this  section  and  no  increases  made  in  rates  to 
the  lower  rated  points,  the  average  net  surplus  per  mile  of 
road  would  be  reduced  to  $516. 

While  it  is  not  possible  to  tell  with  any  degree  of  certainty 
the  exact  effect  upon  the  revenues  of  each  of  the  lines  individ- 
ually, the  check  made  leaves  little  room  for  doubt  as  to  the 
ultimate  average  effect  of  such  a  change  in  rate  making  in  this 
territory  as  above  described.  It  is  entirely  clear  that  the  rev- 
enues of  a  large  percentage  of  the  lines  in  southeastern  terri- 
tory would  be  so  impaired  by  such  a  procedure  as  to  make  it 
impossible  for  them  to  meet  their  operating  expenses,  taxes, 


LONG=A>iD-SHORT-HAUL  CLAUSE  357 

and  fixed  charges  and  leave  to  their  stockholders  even  a  mod- 
erate return.    •    •    • 

From  the  foregoing  it  is  seen  that  the  allegations  of  the 
carriers  have  been  sustained  to  a  great  extent  and, 
as  evidenced  by  the  orders  of  the  Interstate  Commerce 
Commission  issued  in  connection  v^ith  this  case,  the 
strict  observance  of  the  long-and-short-haul  principle 
was  required  in  but  few  instances.  The  orders  issued, 
however,  indicate  that  the  Commission  was  quite  con- 
sistent in  denying  the  continuance  of  rates  to  inter- 
mediate points  which  were  on  a  higher  basis  than  the 
actual  combination  of  through  rates  to  the  base  points 
plus  the  local  rates  therefrom. 

A  careful  consideration  of  these  orders  is  especially 
recommended  to  those  who  are  interested  in  the  ship- 
ping of  goods  from  or  to  this  territory,  as  many  sub- 
stantial reductions  have  been  ordered  which  may  influ- 
ence to  some  degree  commercial  quotations  that  are 
based  on  existing  rates  of  freight  and  the  routes  \ia 
which  traffic  has  been  previously  forwarded  to  destina- 
tion. '        '^    '3*1^1^ 

In  conclusion,  it  is  hoped,  now  that  the  meddlesome 
long-and-short-haul  clause  has  been  construed  for  all 
time  in  so  far  as  this  territory  is  concerned,  that  the 
general  public  will  unite  with  the  carriers  in  an 
endeavor  to  develop  the  basing-point  system  of  rates 
to  the  highest  stage  of  efficiency,  in  the  belief  that  with 
this  most  perplexing  question  settled  other  differences 
are  of  small  moment  and  are  such  as  may  easily  be 
adjudicated  between  the  parties  interested. 


TEST  QUESTIONS 

These  questions  are  for  the  student  to  use  in  testing 
his  knowledge  of  the  assignment.  The  answers  should  be 
written  out,  but  are  not  to  be  sent  to  the  University. 

1.  "What  states  are  embraced  in  Mississippi  Valley  Rate 
Territory  ? 

2.  What  is  meant  by  the  term  "potential  water  competi- 
tion"? 

3.  From  the  East  to  the  Gulf  ports,  what  route  attracts  the 
greatest  volume  of  traffic? 

4.  In  connection  with  the  rates  from  Eastern  Seaboard 
Territory,  what  is  meant  by  the  term  "maximum  absorption"? 

5.  With  reference  to  the  all-water  rates  to  Gulf  ports,  how 
are  the  rates  of  the  rail-and-water  routes  adjusted? 

6.  Upon  what  basis  are  the  all-rail  rates  established  from 
the  Virginia  Cities  to  the  Gulf  ports  ? 

7.  What  is  the  relation  of  the  rates  to  Mobile,  Ala.,  as  con- 
trasted with  the  rates  to  New  Orleans,  La.  ? 

8.  On  traffic  to  Vicksburg,  Miss.,what  scale  of  differentials 
are  the  Gulf  routes  conceded  on  traffic  from  the  East? 

9.  What  adjustment  is  employed  in  establishing  rates  from 
Nashville,  Tenn.,  to  New  Orleans,  La.  ? 

10.  May  the  rates  from  Raleigh,  N.  C,  to  Mobile,  Ala.,  ex- 
ceed the  rates  from  Lynchburg,  Va.,  to  the  same  destination  ? 

11.  Upon  what  basis  were  the  rates  from  St.  Louis,  Mo.,  to 
New  Orleans,  La.,  primarily  established? 

12.  Do  the  rates  from  Chicago,  III,  to  New  Orleans,  La., 
reflect  in  any  measure  the  rates  from  New  York  City  to  the 
same  destination? 

13.  How  arc  the  rates  established  from  interior  points  in 
the  state  of  Illinois  and  from  Central  Freight  Association  Ter- 
ritory ? 

14.  What  is  understood  by  a  ** differential  adjustment"? 

15.  What  are  the  class  rates  on  the  first  six  classes  from 
Bvansville,  Ind.,  to  Mobile.  Ala.? 

ass 


TEST  QUESTIONS  359 

16.  In  connection  with  the  New  Orleans,  La.,  adjustment, 
what  may  be  said  with  reference  to  the  application  of  rates 
from  Cairo,  111.  ? 

17.  What  rates  are  applied  from  Lawrenceburg,  Ind.,  to 
Mobile,  Ala.  ? 

18.  Ashland,  Ky.,  is  ordinarily  considered  as  a  Western 
Termini;  as  such,  what  rates  would  be  applied  therefrom  on 
traffic  destined  to  New  Orleans,  La.  1 

19.  Name  the  more  important  sub-territories  or  groups  into 
which  the  larger  part  of  Central  Freight  Association  Territory 
is  divided. 

20.  How  are  the  class  rates  from  Traverse  City,  Mich.,  to 
New  Orleans,  La.,  constructed? 

21.  On  traffic  originating  at  non-competitive  points  in  the 
southeast,  what  is  the  general  adjustment  of  rates  to  and  from 
the  Gulf  ports? 

22.  Are  the  class  rates  and  the  commodity  rates  from  St. 
Louis,  Mo.,  fixed  under  the  same  principle? 

23.  Assuming  that  a  commodity  carried  a  rate  of  21  cents 
from  Nashville,  Tenn.,  to  Mobile,  Ala.,  how  would  the  rates 
from  Peoria,  111.,  be  adjusted? 

24.  If  a  rate  of  I51/2  cents  per  100  pounds  were  established 
from  Cincinnati,  Ohio,  to  New  Orleans,  La.,  what  would  be 
the  rate  from  Milwaukee,  Wis.  ? 

25.  If  a  rate  of  $6  per  ton  of  2,000  pounds  were  established 
from  St.  Louis,  Mo.,  to  New  Orleans,  La.,  what  would  be  the 
corresponding  rate  from  Springfield,  111.? 

26.  Assuming  that  the  rate  on  pig  iron  from  Chicago,  TIL, 
to  New  Orleans,  La.,  were  $2.75  per  ton  of  2,240  pounds,  what 
would  be  the  rate  to  apply  from  Louisville,  Ky.  ? 

27.  How  are  the  rates  on  shipments  of  live  stock  fixed? 

28.  Upon  what  basis  are  the  rates  to  Gulfport,  Miss.,  estab- 
Ushed? 

29.  What  are  the  class  rates  on  the  first  six  classes  from  De- 
troit, Mich.,  to  Pensacola,  Fla.  I 

30.  Is  water  service  available  at  the  present  time  between 
Memphis,  Tenn.,  and  St.  Louis,  Mo.? 

31.  Does  water  competition  have  to  be  observed  in  all  ca»e« 
in  fijcing  the  rates  via  the  rail  lines? 


360  TEST  QUESTIONS 

32.  Is  the  grouping  of  territory  for  rate-making  purposes 
the  same  in  the  case  of  Memphis,  Tenn.,  as  in  the  case  of  New 
Orleans,  La.? 

33.  What  are  the  current  class  rates  from  the  St.  Louis- 
Louisville  group  to  Memphis,  Tenn.  ? 

34.  Is  the  scale  of  differentials  applicable  from  Peoria,  111., 
to  Memphis,  Tenn.,  the  same  as  that  applicable  in  the  New  Or- 
leans, La.,  adjustment? 

35.  What  are  the  class  rates  from  Savannah,  Ga.,  to  Mem- 
phis, Tenn.  ? 

36.  Is  there  any  fixed  basis  for  the  adjustment  of  north- 
bound commodity  rates  from  Mobile,  Ala.,  to  Memphis,  Tenn.  ? 

37.  A  commodity  rate  of  19  cents  being  established  from 
Cincinnati,  Ohio,  to  Memphis,  Tenn.,  what  is  the  corresponding 
rate  from  Chicago,  111.? 

38.  Under  what  adjustments  are  the  all-rail  class  rates  from 
New  York,  N.  Y.,  to  Memphis,  Tenn.,  constructed?  What  are 
the  current  rates? 

39.  What  are  the  present  rail-and-water  rates  from  Boston, 
Mass.,  to  Memphis,  Tenn.? 

40.  What  is  to  be  understood  by  the  term  "interior  Missis- 
sippi Valley  points"? 

41.  Are  the  rates  charged  by  the  carriers  on  local  traffic 
regulated  to  any  extent  by  the  rates  charged  by  the  other 
carriers  ? 

42.  How  are  the  rates  from  Knoxville,  Tenn.,  to  local  sta- 
tions on  the  Alabama  &  Vicksburg  Railway  constructed  f 

43.  What  differential  adjustment  is  used  in  establishing  the 
rates  from  Chicago,  111.,  to  local  stations  on  the  Illinois  Cen- 
tral Railroad? 

44.  What  is  to  be  understood  by  the  expression  "lowest 
combination  as  maxima"? 

45.  To  stations  on  the  Mobile  &  Ohio  Railroad  south  of  Cor- 
inth, Miss.,  how  are  the  rates  fixed  from  Birmingham,  Ala., 
and  group? 

46.  To  what  cause  may  be  attributed  the  low  scale  of  rates 
applying  from  New  York  City  to  Vicksburg,  Miss.  ? 

47.  Name  some  of  the  more  important  points  in  Buffalo- 
Pittsburgh  Territory. 


TEST  QUESTIONS  361 

48.  What  are  the  rates  on  the  first  six  classes  from  Carter- 
ville,  111.,  to  Meridian,  Miss.? 

49.  What  are  the  rates  on  Classes  A,  B,  and  C  from  Mil- 
waukee, Wis.,  to  Jackson,  Miss.? 

50.  How,  as  a  general  rule,  are  the  rates  made  from  Cen- 
tral Freight  Association  Territory  to  Jackson  and  Meridian, 
Miss.? 

51.  What  are  the  rates  on  the  numbered  classes  from  Chat- 
tanooga, Tenn.,  to  Jackson,  Miss.? 

52.  How  are  the  rates  adjusted  from  Knoxville,  Tenn.,  to 
Jackson,  Miss.  ? 

53.  How  are  the  rates  to  Hattiesburg,  Miss.,  fixed  with  re- 
lation to  the  rates  to  Jackson,  Miss.  ? 

54.  What  is  meant  by  the  term  "a  base  point"? 

55.  What  is  the  base  point  for  the  construction  of  rates 
from  Chicago,  111.,  to  Union  City,  Tenn.  ? 

56.  How  are  the  rates  to  Martin,  Gibbs,  and  Rives,  Tenn., 
fixed  with  relation  to  the  rates  to  Union  City,  Tenn.  ? 

57.  What  are  the  rates  on  the  lettered  classes  from  Carter- 
ville.  111.,  to  Humboldt,  Tenn.? 

58.  What  is  the  Class-F  rate  from  Nashville,  Tenn.,  to  Jack- 
son, Tenn.? 

59.  What  is  the  Class-D  rate  from  Indianapolis,  Ind.,  to 
Grand  Junction,  Tenn.? 

60.  Are  the  rates  from  Memphis,  Tenn.,  made  upon  any 
fixed  basis? 

61.  What  is  meant  by  the  term  "arbitrarily  established"? 

62.  What  is  the  base  point  for  the  construction  of  rates  to 
Tupelo,  Miss.  ? 

63.  What  are  the  rates  on  the  first  three  classes  from  Mem- 
phis, Tenn.,  to  Winona,  Miss.  ? 

64.  What  are  the  basing  rates  from  Memphis,  Tenn.,  to 
Yazoo  City,  Miss,? 

65.  What  are  the  minimum  rates  from  Chattanooga,  Teim., 
to  Jackson,  Tenn.  ? 

66.  Upon  what  basis  are  the  rates  constructed  from  Knox- 
ville, Tenn.,  to  junction  points  north  of  Grand  Junction,  Tenn., 
and  Corinth,  Miss.  ? 


362  TEST  QUESTIONS 

67.  What  are  the  rates  on  the  numbered  classes  from  At- 
lanta, Ga.,  to  Corinth,  Miss.? 

68.  In  the  rate  adjustment  in  Kentucky-Tennessee  Terri- 
tory, is  the  competition  of  various  kinds  experienced  to  as 
great  an  extent  as  in  other  portions  of  Southern  Territory  ? 

69.  What  compels  the  relatively  low  rates  from  Lexington, 
Ky.,  to  the  Ohio  River? 

70.  To  and  from  the  East,  what  basis  is  employed  in  estab- 
lishing the  rates  to  and  from  Lexington  and  Winchester,  Ky.T 

71.  As  a  general  proposition,  are  the  rates  to  west  Ken- 
tucky junctions,  such  as  Central  City,  made  on  the  same  basis 
as  the  local  rates  of  the  carriers  ? 

72.  What  constitutes  an  important  item  in  the  outbound 
tonnage  of  Clarksville,  Tenn.  ? 

73.  May  the  water  competition  to  Clarksville  and  Nash- 
ville, Tenn.,  be  regarded  as  active  or  potential  at  this  time  ? 

74.  How  are  the  rates  from  New  York  City  to  Nashville, 
Tenn.,  fixed? 

75.  Is  the  long-and-short-haul  clause  observed  as  to  rates 
between  Cincinnati,  Ohio,  and  Chattanooga,  Tenn.  ? 

76.  When  the  rates  from  Cincinnati,  Ohio,  to  Chattanooga, 
Tenn.,  were  reduced  by  the  Interstate  Commerce  Commission, 
was  a  similar  reduction  put  into  effect  at  Knoxville,  Tenn.  ? 

77.  What  rates  are  applied  as  maxima  from  Louisville,  Ky., 
and  Cincinnati,  Ohio,  to  Morristown,  Tenn.? 

78.  What  basis  is  employed  in  establishing  rates  from  Cin- 
cinnati, Ohio,  to  Johnson  City,  Tenn.  ? 

79.  What  general  reason  may  be  advanced  for  the  estab- 
lishment of  commodity  rates? 

80.  How  do  the  outbound  commodity  rates  from  Southern 
Territory  compare  with  the  inbound  commodity  rates  ? 

81.  Outline  briefly  the  current  adjustment  employed  in  es- 
tablishing rates  on  lumber  from  points  in  Southern  Territory. 

82.  On  cotton  goods,  do  the  mills  in  the  Carolinas  pay  a 
higher  rate  to  western  points  than  the  Georgia  mills? 

83.  What  is  meant  by  the  expression  **the  principle  of  af» 
fo?»diDff  a  free  movement"? 


TEST  QUESTIONS  363 

84.  What  market  of  production  outside  of  Southern  Terri- 
tory influences  the  rates  on  furniture  from  points  in  Southern 
Territory  ? 

85.  When  did  the  Act  to  Regulate  Commerce  originally  be- 
come effective? 

86.  Summarize  briefly  the  conditions  affecting  transporta- 
tion that  existed  prior  to  the  passage  of  the  Act. 

87.  What  is  the  substance  of  the  long-and-short-haul 
clause  ? 

88.  Was  the  requirement  of  the  long-and-short-haul  clause 
complied  with  by  the  carriers  throughout  the  country? 

89.  Does  the  contention  of  the  carriers  that  through  traffic 
may  be  handled  more  economically  than  local  traffic  appear 
logical  to  you? 

90.  What  was  the  first  case  of  any  note  that  was  conducted 
by  the  Interstate  Commerce  Commission?  What  were  the 
Commission's  findings  in  this  case?  What  was  the  effect  of 
its  order? 

91.  Did  the  court  at  that  time  sustain  the  contentions  of  the 
carriers  or  the  order  of  the  Commission  ? 

92.  What  was  the  effect  of  the  legislation  of  1910  with  re- 
gard to  the  long-and-short-haul  clause? 

93.  Summarize  briefly  the  rules  of  law  that  affect  this  situa- 
tion. 

94.  Upon  what  lines  was  the  defense  of  the  adjustment 
conducted  by  the  carriers? 

95.  What  were  the  findings  of  the  Interstate  Commerce 
Commission  upon  the  rehearing  of  this  case  ? 


APPENDIX  A 

SECTION  4  OF  THE  ACT  TO  REGULATE  COMMERCE 

Throughout  this  treatise,  continued  reference  to  the  fourth 
section  of  the  Act  to  Regulate  Commerce,  styled  the  long-and- 
short-haul  clause,  has  been  made  and  we  are  accordingly  repro- 
ducing this  section  of  the  Act  in  its  entirety  in  order  that  it  may 
be  carefully  studied  in  connection  with  the  opinions  expressed 
and  the  decisions  rendered  which  are  based  thereon. 

Sec.  4.  (As  amended  June  18,  1910.)  That  it  shall  be  unlawful  for  any 
common  carrier  subject  to  the  provisions  of  this  Act  to  charge  or  receive  any 
greater  compensation  in  the  aggregate  for  the  transportation  of  passengers, 
or  of  like  kind  of  property,  for  a  shorter  than  for  a  longer  distance  over  the 
same  line  or  route  in  the  same  direction,  the  shorter  being  included  within  the 
longer  distance,  or  to  charge  any  greater  compensation  as  a  through  route 
than  the  aggregate  of  the  intermediate  rates  subject  to  the  provisions  of  this 
Act;  but  this  shall  not  be  construed  as  authorizing  any  common  carrier  within 
the  terms  of  this  Act  to  charge  or  receive  as  great  compensation  for  a  shorter 
as  for  a  longer  distance:  Provided,  hoirever.  That  upon  application  to  the 
Interstate  Commerce  Commission  such  common  carrier  may  in  special  cases, 
after  investigation,  be  authorized  b}'  the  Commission  to  charge  less  for  longer 
than  for  shorter  distances  for  the  transportation  of  passengers  or  property; 
and  the  Commission  may  from  time  to  time  prescribe  the  extent  to  which 
such  designated  common  carrier  may  be  relieved  from  the  operation  of  this 
section:  Provided,  further.  That  no  rates  or  charges  lawfully  existing  at  the 
time  of  the  passage  of  this  amendatory  Act  shall  be  required  to  be  changed 
by  reason  of  the  provisions  of  this  section  prior  to  the  expiration  of  six  months 
after  the  passage  of  this  Act,  nor  in  any  case  where  application  shall  have 
been  filed  before  the  Commission,  in  accordance  with  the  provisions  of  this 
section,  until  a  determination  of  such  application  by  the  Commission. 

Whenever  a  carrier  by  railroad  shall  in  competition  with  a  water  route  or 
routes  reduce  the  rates  on  the  carriage  of  any  species  of  freight  to  or  from 
competitive  points,  it  shall  not  be  permitted  to  increase  such  rates  unless 
after  hearing  by  the  Interstate  Commerce  Commission  it  shall  be  found  that 
such  proposed  increase  rests  upon  changed  conditions  other  than  the  eUmina- 
tion  of  water  competition. 

It  must  not  be  understood,  however,  that  violations  exist  in 
this  territory  alone,  for  such  is  not  the  case.  The  circuitous 
lines  in  Official  Classification  Territory  violate  in  many  instances, 
under  the  Central  Freight  Association  and  Trunk  Line  mileage 
basis,  the  provisions  of  this  Act.  Likewise,  the  Trans-Conti- 
nental trunk  lines  maintain  higher  rates  to  intermediate  points 
from  certain  territories  than  they  do  to  terminal  cities.  In  the 
latter  case,  however,  the  Commission  has  indicated  that  the 
carriers  were  justified  to  some  extent  in  this  practice  and  has 
authorized  the  continuance  of  the  policy.^ 

'See  Part  .3  of  "Freight  Rates—Western  Territory." 

;;64 


SBOTION  4  OF  TBE  ACT  366 

It  would  be  manifestly  impossible  for  the  Interstate  Com- 
merce Commission  to  analyze  every  tariff  and  rate  that  is  filed 
with  it  by  the  carriers  in  order  to  determine  whether  or  not  the 
provisions  of  the  Act  are  violated. 

For  this  reason,  the  Commission  has  incorporated  in  its 
tariff  regulations  a  very  liberal  rule  relieving  the  carriers  of  the 
necessity  of  pubhshing  specific  rates  from  or  to  all  intermediate 
stations  not  to  exceed  the  most  distant  point  of  origin.  This 
rule  is  embodied  in  Tariff  Circular  No.  18-A  and  reads  as  follows: 

77.  PunUSHINQ  AND  FiLING  TARIFFS  UNDER  AMENDED  FoURTH  SEC- 
TION OF  THE  Act  (adopted  February  13,  1911). — If  tariffs  containing  com- 
modity rates  applicable  from  points  of  production  provide  for  their  applica- 
tion from  intermediate  points  not  named,  it  would  be  necessary  to  post  those 
tariffs  at  every  intermediate  point,  although  such  shipment  may  never  be 
made  from  a  point  not  specifically  named.  If  such  tariffs  do  not  provide 
for  application  from  intermediate  points,  they  would  conflict  with  the  amended 
fourth  section  of  the  Act  whenever  the  class  rate  or  a  combination  from  an 
intermediate  point  exceeds  the  commodity  rate  from  a  more  distant  point. 

Tariffs  should  not  contain  volumes  of  unnecessary  rates,  and  it  is  unde- 
sirable to  require  the  posting  of  large  numbers  of  tariffs  at  points  from  which 
no  shipments  are  likely  to  move.  Therefore,  until  further  ordered,  carriers 
may  file  tariffs  containing  commodity  rates  apphcable  from  known  points  of 
production  without  making  such  rates  applicable  from  all  intermediate  points. 
Each  such  tariff  .shall  bear  on  its  title-page  the  folIowin2;  notation: 

By  authority  of  Rule  77  of  Interstate  Commerce  Commission  Tariff  Cir- 
cular No.  18-A,  this  tariff  (these  rates)  is  not  (are  not)  made  applicable  from 
(or  to)  all  intermediate  points.  Upon  reasonable  request  therefor  rates 
which  will  not  exceed  those  in  effect  from  (or  to)  more  distant  points  will, 
under  authority  granted  by  the  Interstate  Commerce  Commission,  be  estab- 
lished from  (or  to)  any  intermediate  point  hereunder  upon  one  day's  notice 
to  the  Commission  and  to  the  public. 

In  ob.servance  of  this  Rule  carriers  may  on  one  day's  lawful  notice  to  the 
Commission  and  to  the  public  extend  the  appUcation  of  the  rates  shown  in 
the  tariff  by  establishing  such  rates  from  intermediate  points  which  do  not 
exceed  the  rates  from  the  more  distant  point  on  same  Une  or  route,  provided 
no  advance  is  thereby  made  in  any  existing  rate. 

Ordinarily  rates  to  intermediate  points  of  destination  not  named  in  the 
tariff  can  properly  and  should  be  provided  for  by  a  clause  in  the  tariff  authoriz- 
ing the  application  of  its  rates  to  intermediate  points  of  destination,  but  in 
instances  where  the  intermediate  application  of  rates  is  impracticable  or  where 
conflicting  rates  would  result  therefrom,  commodity  rates  may  in  the  first 
instance  be  established  to  such  intermediate  destinations  not  higher  than  to 
more  distant  points  on  same  line  or  route  on  like  notice  as  from  points  of 
oridn,  provided  no  advance  is  thereby  made  in  any  existing  rate. 

For  the  purpose  of  eliminating  from  tariffs  higher  charges  for  shorter  hauls 
as  same  are  referred  to  in  the  amended  fourth  section  of  the  Act,  and  when 
same  have  been  in  effect  thirty  days  or  more,  carriers  may  make  such  changes 
effective  on  one  day's  lawful  notice  to  the  Commission  and  to  the  public, 
provided  such  changes  are  in  each  instance  reductions  in  rates,  fares,  or 
charges.     (See  Rule  56.) 

A  tariff  or  supplement  containing  rates  or  fares  issued  upon  short  notice 
under  authority  of  this  Rule  must  bear  on  its  title-page  or  in  connection  with 
the  item  containing  the  rate  or  fare  the  following  notation: 

Issued  under  authority  of  Rule  77  of  Interstate  Commerce  Commission 
Tariff  Circular  No.  18-A.   The  rate  (fare,  or  rates  or  fares)  hereby  reduced 


866  APPENDIX 

appears  (or  appear)  in tariff  I.  C.  C.  No.  — — ,  item  (or  page) -, 

and  the  rate  (fare,  or  rates  or  fares)  from  (or  to) Jname  it],  the  more 

distant  point,  appears  (or  appear)  in tariff  I.  C.  U.  No. ,  item 

(or  page) . 

When  the  Commission  has  issued  an  order  granting  to  a  carrier  authority 
to  depart  from  the  provisions  of  the  amended  fourth  section  of  the  Act  and 
to  charge  higher  rates  or  fares  for  shorter  than  for  longer  distances  over  the 
same  line  or  route,  the  title-page  of  each  tariff  issued  and  filed  under  such 
authority  must  bear  the  following  notation: 

This  tariff  contains  rates  (faros)  that  are  higher  for  shorter  distances  than 
for  longer  distances  over  the  same  route,  such  departure  from  the  terms  of 
the  amended  fourth  section  of  the  Act  to  regulate  commerce  is  permitted  by 
authority  of  Interstate  Commerce  Commission  Order  F.  S.  No.  —  of  (date] 
19—. 

■^Tien  the  Commission  has  issued  an  order  granting  to  a  carrier  authority 
to  depart  from  the  provisions  of  the  amended  fourth  section  of  the  Act  and  to 
charge  rates  or  fares  higher  than  the  aggregate  of  the  intermediate  rates  or 
fares  subject  to  the  Act,  the  title-page  of  each  tariff  issued  and  filed  under 
such  authority  must  bear  the  following  notation: 

This  tariff  contains  rates  (or  fares)  that  exceed  the  sums  of  the  intermediate 
rates  (or  fares)  subject  to  the  Act.  Such  departure  from  the  terms  of  the 
amended  fourth  section  of  the  Act  to  regulate  commerce  is  permitted  by 
authority  of  Interstate  Commerce  Commission  Order  F.  S.  No.  —  of  [date] 
19—. 

Nothing  in  this  Rule  may  be  construed  as  waiving  any  of  the  provisions 
of  the  amended  fourth  section  of  the  Act  to  regulate  commerce. 

The  tarifif  publications  of  the  carriers  should,  therefore,  be 
consulted  for  departures  from  the  provisions  of  the  long-and- 
short-haul  clause,  for  when  such  departures  exist,  they  must 
be  specifically  provided  for,  as  indicated  in  the  foregoing  rule. 


APPENDIX  B 

READJUSTMENT  OF  RATES  TO  SOUTHEASTERN  TERRITORY 
FROM  EASTERN  POINTS  OF  ORIGIN 


In  connection  with  this  and  subsequent  divisions  of  this 
work,  it  has  seemed  desirable  to  consolidate  the  orders  of  the 
Interstate  Commerce  Commission  pertaining  to  the  petition  of 
the  carriers  in  the  long-and-short-haul  case  under  subdivisions 
arranged  according  to  territorial  points  of  origin.  In  this  sub- 
division, therefore,  will  be  found  the  orders  of  the  Commission 
affecting  traffic  originating  at  the  Eastern  Cities  and  destined 
to  the  following  points: 


Charleston,  S.  C. 
New  Orleans,  La. 
Memphis,  Tenn. 
Dublin,  Ga. 
Selma,  Ala. 
Birmingham,  Ala. 
Atlanta,  Ga. 


Savannah,  Ga. 
Mobile,  Ala. 
Macon,  Ga. 
Columbus,  Ga. 
Demopolis,  Ala. 
Meridian,  Miss. 
Athens,  Ga. 


Brunswick,  Ga. 
Pcnsacola,  Fla. 
Milledgeville,  Ga. 
Eufaula,  Ala. 
Tuscaloosa,  Ala. 
Jackson,  Miss. 
Cordele,  Ga. 


Jacksonville,  Fla. 
Augusta,  Ga. 
Hawkinsville,  Ga. 
Montgomery,  Ala. 
Rome,  Ga. 
Albany,  Ga. 


Continuances 

The  following  continuances  were  allowed. 

To  South  Atlantic  and  Gulf  Ports 

The  continuance  of  class  and  commodity  rates  from  New  York  City  to 
Charleston,  S.  C,  Savannah  and  Brunswick,  Ga.,  Jacksonville,  Fla.,  New 
Orleans,  La.,  Mobile,  Ala.,  and  Pensacola,  Fla.,  and  to  other  stations  con- 
tiguous thereto  to  which  rates  from  New  York  are  made  by  combination  on 
the  above-named  points  of  destination,  which  are  lower  than  the  rates  con- 
currently applicable  on  like  traffic  to  intermediate  stations:  Provided,  That 
the  rates  to  intermediate  local  stations  which  have  not  been  depressed  by 
combination  on  contiguous  competitive  points  are  not  increased. 

To  Points  Intermediate  to  Augusta,  Ga.,  Memphis,  T&nn.,  Macon  and 

MilledgeidUe,  Ga. 


The  continuance  of  class  and  commodity  water-and-rail  rates  from  New 
York  Citv  to  Augusta,  Ga.,  Memphis,  Tenn.,  Macon,  Milledgeville,  Hawkins- 
ville, Dublin,  and  Columbus,  Ga.,  Eufaula,  Montgomery,  Selma,  Demopolis, 
and  Tuscaloosa,  Ala.,  and  to  points  to  which  rates  are  made  by  combination 
on  the  above-named  points  of  destination  which  are  lower  than  the  rates  con- 
currently applicable  on  like  traffic  to  intermediate  stations:  Provided — • 

367 


368  APPENDIX 

First.  That  on  or  before  April  1,  1915.  on  the  route  from  New  York  to 
Augusta  (Ocean  Steamship  Company  of  Savannah  to  Savannah,  Ga  ,  Central 
of  Georgia  Railroad  from  Savannah  to  Augusta,  Ga.;  con.structive  mileage, 
382),  the  rates  to  stations  between  Savannah  and  Augusta  are  so  corrected 
as  not  to  exceed  the  rates  for  two-line  hauls  for  like  distances  shown  in  Table  A . 

Second.  That  on  the  route  from  New  York  to  Memphis  (Pennsylvania 
Railroad  to  Potomac  Yards,  Va.;  Southern  Railway  from  Potomac  Yards 
to  Lynchburg,  Va.;  Norfolk  and  Western  Railway  from  Lynchburg,  Va.,  to 
Bristol,  Tenn.;  Southern  Railway  from  Bristol,  Tenn.,  to  Memphis,  Tenn.* 
1,160  miles),  the  rates  to  stations  between  Chattanooga  and  Memphis  affectea 
by  combination  on  Memphis  shall  not  exceed  such  combination  and  the  rates 
to  stations  not  so  affected  are  so  corrected  as  to  ehminate  existing  violations 
of  the  long-and-short-hau!  clause. 

Third  That  on  or  before  April  1,  1915,  on  the  routes  from  New  York  to 
Macon  (Ocean  Steamship  Company  of  Savannah  to  Savannah,  Ga.;  Central 
of  Georgia  Railway  from  Savannah  to  Macon,  Ga  ;  constructive  mileage, 
441),  Milledgeville  (Ocean  Steamship  Company  of  Savannah  to  Savannah, 
Ga. ;  Central  of  Georgia  Railway  from  Savannah,  Ga.,  to  Milledgeville,  Ga.; 
constructive  mileage,  438),  Hawkinssville  (Ocean  Steamship  Company  of 
Savannah  to  Savannah,  Ga.;  Central  of  Georgia  Railway  from  Savannah, 
Ga.;  to  Dubhn,  Wrightsville,  and  Tennille;  Dublin  to  Hawkinsville;  con- 
structive mileage,  434),  and  Dublin  (Ocean  Steamship  Company  of  Savannah 
to  Savannah,  Ga.;  Central  of  Georgia  Railway  from  Savannah,  Ga.,  to 
Dublin;  constructive  mileage,  393),  the  rates  to  stations  between  Savannah 
on  the  one  hand  and  Macon,  Milledgeville,  Hawkinsville,  or  Dublin,  on  the 
other  hand  are  so  corrected  that  they  do  not  exceed  the  rates  over  two-hne 
hauls  for  like  distances  .shown  in  Table  A. 

Fourth.  That  on  the  route  from  New  York  to  Columbus  (Ocean  Steam- 
ship Company  of  Savannah  to  Savannah;  Central  of  Georgia  Railway  from 
Savannah  to  Columbus;  constructive  mileage,  541;  Atlantic  Coast  Line 
Railroad  from  Savannah,  Ga.,  to  Albany,  Ga.;  constructive  mileage,  458; 
Central  of  Georgia  Railway  from  Savannah,  Ga.,  to  Eufaula,  Ala.;  construct- 
ive mileage,  585),  the  rates  to  stations  from  Everett,  Ga.,  to  Schatulga,  Ga., 
are  not  increased. 

Fifth.  That  on  or  before  April  1,  1915,  on  the  route  to  Montgomery 
(Ocean  Steamship  Company  of  Savannah  to  Savannah.  Ga.;  Seaboard  Air 
Line  Railway  from  Savannah  to  Montgomery,  Ala.;  constructive  mileage, 
588),  the  rates  to  stations  east  of  Hurtsboro,  Ala.,  are  so  corrected  as  not  to 
exceed  the  present  rates  to  Hurtsboro,  viz.,  1-30,  111,  98,  83,  69,  and  65  cents 
der  100  pounds  on  Clas.ses  1  to  6,  respectively,  and  the  rates  to  stations  between 
Hurtsboro  and  Montgomery  are  so  corrected  as  not  to  exceed  the  rates  to 
Hurtsboro  by  more  than  5  per  cent. 

Sixth.  That  on  the  route  from  New  York  to  Selma  (Ocean  Steamship 
Company  of  Savannah  to  Savannah ;  Seaboard  Air  Line  Railway  from  Savan- 
nah to  Montgomery;  Western  Railway  of  Alabama  from  Montgomery  o 
Selma;  constructive  mileage,  638),  the  rates  to  stations  between  Montgomery 
and  Selma  affected  by  combination  on  one  of  these  points  shall  not  exceed 
such  combination  and  the  rates  to  stations  not  so  affected  are  not  increased. 

Seventh.  That  on  or  before  April  1,  1915,  on  the  route  from  New  York 
City  to  Domopolis  (Ocean  Steamship  Company  of  Savannah  to  Savannah; 
Seaboard  Air  Line  Railway  from  Savannah  to  Montgomery;  Western  Railway 
of  Alabama  from  Montgomery  to  Selma;  Southern  Railway  from  Selma  to 
Demopolis;  constructive  mileage,  687),  the  rates  to  stations  between  Selma 
and  Demopolis  are  so  corrected  that  they  do  not  exceed  the  rates  to  Demopolis 
by  more  than  20, 18, 15, 13,  11,  and  10  cents  per  100  pounds  oa  Classea  1  to  8, 
rwipectively. 


READJUSTMENT  OF  RATES  369 

To  Rome,  Ga.,  Birmingham,  Ala.,  Meridian  and  Jackson,  Misa. 

The  continuance  of  water-and-rail  rates  on  classes  and  commodities  from 
New  York  City  to  Rome,  Ga.,  Birmingham,  Ala.,  and  to  Meridian  and 
Jackson,  Miss.,  and  to  points  contiguous  thereto  to  which  rates  are  made  by 
combination  on  these  points,  which  are  lower  than  the  rates  concurrently 
appUcable  on  hke  traffic  to  intermediate  stations:    Provided — 

First.  That  on  or  before  April  1,  1915,  on  the  route  from  New  York  to 
Rome  (Old  Dominion  Steamship  Company  to  Norfolk,  Va.;  Southern  Rail- 
way through  Atlanta  to  Rome;  constructive  mileage,  850),  the  rates  to  sta- 
tions between  Atlanta  and  Rome  are  so  corrected  that  they  do  not  exceed  the 
rates  over  two-line  hauls  of  like  distances  shown  in  Table  A. 

Second.  That  on  or  before  April  1,  1915,  on  the  route  from  New  York  to 
Meridian  (Old  Dominion  Steamship  Company  to  Norfolk,  Va.;  Southern 
Railway  from  Norfolk,  Va.,  to  Birmingham,  Ala.;  Alabama  Great  Southern 
Railroad  from  Birmingham  to  Meridian;  constructive  mileage,  882),  the 
rates  from  New  York  to  stations  on  the  Alabama  Great  Southern  Railroad 
between  Birmingham  and  Meridian  are  so  corrected  as  not  to  exceed  the 
rates  over  two-Une  hauls  of  like  distances  shown  in  Table  A. 

Third.  That  on  or  before  April  1,  1915,  on  the  route  from  New  York  to 
Jackson  (Old  Dominion  Steamship  Company  to  Norfolk,  Va.;  Southern 
Railway  from  Norfolk,  Va.,  to  Birmingham;  Alabama  Great  Southern  Rail- 
road from  Birmingham  to  Meridian;  Alabama  &  Vicksbarg  Railway  from 
Meridian  to  Jackson;  constructive  mileage,  978),  the  rates  to  stations  on  the 
Alabama  &  Vicksburg  Railway  between  Meridian  and  Jackson  are  so  cor- 
rected that  the  rates  to  stations  between  Meridian  and  Newton  do  not  exceed 
the  present  rates  to  Newton,  and  the  rates  to  stations  between  Newton  and 
Jackson  do  not  exceed  the  rates  to  Jackson  by  more  than  12,  11,  10,  9,  9,  and 
8  cents  per  100  pounds  on  Classes  1  to  6,  respectively. 

Fourth.  That  on  the  route  from  New  York  to  Birmingham  (Clyde  Line 
to  Charleston;  Southern  Railway  from  Charleston  to  Augusta;  Georgia 
Railroad  from  Augusta,  Ga.,  to  Atlanta;  Southern  Railway  from  Atlanta  to 
Birmingham;  constructive  mileage,  729),  the  rates  to  stations  between  At- 
lanta and  Birmingham  that  are  affected  by  combination  on  Atlanta  or  Birming- 
ham shall  not  exceed  such  combination  and  the  rates  to  stations  not  so  affected 
are  not  increased. 

The  Alabama.  Tennessee  &  Northern  Railroad  Company;  Apalachicola 
Northern  Railroad  Company  and  L.  H.  Dimmitt,  receiver  thereot";  Atlanta 
&  St.  Andrews  Bay  Railway  Company;  Augusta  Southern  Railroad  Company; 
Birmingham  &  Atlantic  Railroad  Company;  Birmingham,  Columbus  &  St. 
Andrews  Railroad  Company  and  A.  D.  Campbell,  receiver  thereof;  Birming- 
ham &  Southeastern  Railway  Company;  Chattahoochee  Valley  Railway 
Company;  Chicago,  Memphis  &  Gulf  Railroad  Company;  Fern  wood  &  Gulf 
Railroad  Company;  Fitzgerald,  Ocilla  &  Broxton  Railroad  Company  and 
E.  T.  Lamb,  receiver  thereof;  FUnt  River  &  Northeastern  Railroad  Com- 
pany; Florida  Central  Railroad  Company  and  R.  A.  McCranie,  receiver 
thereof;  Gainesville  Midland  Railway;  Georgia  Coast  &  Piedmont  Railroad 
Company;  Georgia  &  Florida  Railway;  The  Georgia,  Florida  &  Alabama 
Railway  Company;  Georgia  Northern  Railway  Company;  Georgia  South- 
western &  Gulf  Railroad  Company;  Greene  County  Railroad  Company; 
Hawkinsville  &  Florida  Southern  Railway  Company;  Hawkinsville  &  Western 
Railroad  Company;  Kentwood  &  Eastern  Railway  Company;  Liberty- 
White  Railroad  Company;  Macon  &  Birmingham  Railway  Company  and 
John  B.  Munson.  receiver  thereof;  Macon,  DabUn  &  Savannah  Railroad 
Company;  Marianna  &  Blountstown  Railroad  Company;  Meridian  &  Mem- 
phis Railway;  Natchez,  Columbia  &  Mobile  Railroad  Company;  Ocilla 
Southern  Railroad  Company;   Pascagoula,  Moss  Point  &  Northern  Railroad 


«70  APPENDIX 

Company;  Register  &  Glenn ville  Railway;  Savannah  <&  Noithwfcrtem  Rail- 
way; Savannah  &  Statesboro  Railway  Company;  South  Georgia  Railwaj 
Company;  Sylvania  &  Girard  Railroad  Company;  Tennessep,  Alabama  8 
Georgia  Railroad  Company;  Valdosta,  Moultrie  &  Western  Railroad  Com- 
pany and  B.  P.  Jones,  C.  I.  Harrell,  and  A.  L.  Davis,  receivera  thereof: 
Wadley  Southern  Railway  Company;  and  Wrightsville  &  Tennille  Railroad 
Company  are  authorized  to  continue  for  two  years  via  the  lines  named  the 
same  rates  from  New  York  City  and  related  points  and  the  Ohio  and  Missis- 
sippi River  crossings  to  and  via  their  junctions  with  other  lines  as  are  con- 
currently effective  to  the  same  points  via  the  lines  of  their  competitors,  and 
to  continue  higher  rates  to  intermediate  local  stations  on  the  linea  named 
above:  Provided,  That  the  present  differences  between  the  rates  to  local  and 
junction  points  are  not  increased. 

Denials 

The  petitions  to  continue  violations  to  the  following  pointe 
were  denied. 

To  Albany,  Ga. 

The  continuance  of  lower  rates  on  classes  and  commodltie*  from  N»w 
Vork  City  to  Albany,  Ga.,  than  the  rates  concurrently  appUcabl*  on  lik« 
traflBc  to  mtermediate  stations  is  denied. 

To  Atlanta,  Athens,  and  Cordele,  Ga. 

The  continuance  of  lower  class  and  commodity  rates  from  New  York  to 
Atlanta,  Athens,  and  Cordele,  Ga.,  via  Norfolk  and  the  south  Atlantic  ports 
and  from  New  York  to  Meridian  and  Jackson,  Miss.,  via  New  Orleans,  La., 
and  Mobile,  Ala.,  than  the  rates  concurrently  applicable  on  like  traffic  to 
intermediate  stations  is  denied. 

The  rates  prescribed  herein  as  maxima  to  be  observed  at  intermediate 
points  are  as  set  forth  in  Table  A. 

And  it  is  further  ordered.  That  in  all  those  instances  covered  by  this  order 
of  the  Commission  where  carriers  have  been  authorized  to  maintain  lower  class 
and  commodity,  rates  to  more  distant  than  to  intermediate  points,  items  in 
tariffs  containing  commodity  rates  to  more  distant  points,  which  rates  are 
not  made  applicable  to  intermediate  points,  shall  contain  and  refer  by  proper 
reference  mark  to  a  note  reading  as  follows: 

"The  rate  named  in  this  item  is  not  applicable  to  all  intermediate  points. 
This  departure  from  the  requirements  of  the  fourth  section  is  authorized  by 
I.  C.  C.'s  Fourth  Section  Order  No.  3866.  Upon  reasonable  application  there- 
for a  rate  will  be  established  to  any  intermediate  point  upon  one  day's  notice 
to  the  Commission  and  to  the  pubhc  which  will  not  exceed  the  rate  to  the  next 
more  distant  point  to  which  a  rate  is  named  by  more  than  the  class  rate  on 
the  class  to  which  this  commodity  belongs  exceeds  the  rate  on  the  same,  class 
to  the  more  distant  point." 

Constructive  Mileage 

The  term  "constructive  mileage"  alluded  to  in  the  foregoing 
ii  employed  in  connection  with  water-and-rail  routes  and  indi- 


KKADJUJSTMifiNT  (JF  KAI^Bb 


371 


TABLE  A' 


OlSTANCUS 


too  zniles: 

One  line 

Two  or  more  lines 
130  miles: 

One  line 

Two  or  more  lines 
«00  miles: 

One  lin» 

Two  or  more  lines 
*aO  miles: 

One  line 

Two  or  more  lines 
aiX)  miles: 

One  line 

Two  or  more  lines 
650  miles: 

One  line 

Two  or  more  lines 
fiOO  miles: 

One  line 

Two  or  more  linea 
<dO  miles: 

One  line 

Two  or  more  lines 
70O  miles: 

One  line 

Two  or  more  lines 
750  miles: 

One  line 

Two  or  more  lines 


ClsBse^ 
6   A   B 


D   £  U 


66  84 
106  92 

103  89 

no  96 

110  95 
112  98 

115  9S 

116  100 

116  99 
120  104 


69  63 

79  68 

73  69 
84  69 

77  69 
87  72 

80  69 
89  74 

83  70 
92  76 


117  100  85  72 
128  112  99  83 

lis  102  86  74 
131  114  101  85 

123  106  89  78 
137  118  106  90 

128  110  94  82 
142  126  113  94 

133  114  98  86 
147  130  118  98 


51  46 

66  47 

65  47 

68  48 

58  49 

60  49 

50  51 

62  61 

60  51 
64  62 

61  52 

69  56 

63  53 

70  58 

66  56 
74  60 

70  69 

80  66 

73  62 

84  69 


3S  38 

40  44 

40  41 

41  44 

41  43 

42  44 

41  44 

42  44 

41  45 

43  46 

43  46 

43  48 

44  47 

44  49 

45  49 
47  51 

47  51 

50  53 

49  54 

53  56 


31  25 

32  26 

33  26 

34  27 

34  27 

35  27 

34  28 

35  28 

34  29 

35  29 

85  30 

37  31 

36  30 

38  32 

37  32 

40  33 

38  33 
43  35 

39  34 
45  36 


46  66  52 

52  66  59 

60  68  55 

62  69  S7 

51  59  67 

54  60  i7 

62  60  60 
66  68  60 

63  62  60 
66  64  62 

54  64  64 

69  68  64 

66  64  64 

62  71  66 

59  67  66 

66  74  68 

63  69  70 

68  77  71 

70  73  78 
74  80  73 


*In  applying  this  scale  to  ocean-and-rail   rates  from  New  York  and  PhiladelphU. 
the  following  differentials  may  be  added  to  the  rates  shown  in  the  scale: 


Classes 

Differentials 


2 

6 


A 
2 


B      C 
3       3 


D 
3 


E      H 

4       3 


F 
6 


cates  a  distance  which  is  less  than  the  actual.  It  is  customary, 
in  dividing  joint  rates  between  water  carriers  on  the  one  hand 
and  rail  carriers  on  the  other,  to  do  so  on  an  approximate  mileage 
pro-rate,  the  water  lines  construing  their  mileage  on  the  basis  of 
two  or  more  miles  to  each  mile  of  land  haul  or  reducing  their 
actual  mileage  to  a  fixed  figure  greatly  less  than  the  actual  dis- 
tance between  the  ports  they  serve  thus.  The  mileage  from 
New  York,  N.  Y.,  to  Norfolk,  Va.,  is  assumed  to  be  160  miles; 
from  New  York  to  Charleston,  Savannah,  or  Brunswick,  250 
miles;  consequently,  the  constructive  mileage  to  any  given 
point  from  New  York  is  computed  by  adding  these  figures  to 
the  rail  distance  from  the  port  in  question  to  the  final  destination. 
As  has  been  previously  intimated,  the  Interstate  Commerce 
Commission  has  granted  the  carriers  a  continuance  of  the  order 
referred  to  until  April  1,  1915,  by  which  time  it  is  hoped  that  the 
adjustments  will  all  have  been  effected.  There  is  some  doubt, 
however,  in  transportation  circles  as  to  whether  a  herculean 
task  of  this  kind  can  be  performed  within  this  period,  and  in  the 


372  APPENDIX 

event  that  it  cannot,  additional  time  will  have  to  be  obtained 
by  sanction  of  the  Commission. 

The  order  of  the  Commission,  however,  is  very  specific  and 
those  directly  concerned  will  have  no  difficulty  in  determining 
the  effect  thereof  by  selecting  the  various  routes  designated, 
tabulating  the  current  rates  applicable  thereon,  and  applying 
the  order  of  the  Commission  to  such  intermediate  points  where 
a  higher  rate  is  maintained  with  reference  to  a  lower  rate  to  a 
more  distant  point. 


APPENDIX  C 

READJUSTMENT  OF  RATES  TO  SOUTHEASTERN  TERRITORY 
FROM  WESTERN  POINTS  OF  ORIGIN 


In  this  subdivision  will  be  found  the  orders  of  the  Interstate 
Commerce  Commission  affecting  traffic  originating  at  Cin- 
cinnati, Ohio,  Louisville,  Ky.,  and  related  points  and  destined 
to  the  following  points: 


Charleston,  S.  C. 
Jacksonville,  Fla. 
Selma,  Ala. 
Atlanta,  Ga. 
Birmingham,  Ala. 


Port  Royal,  S.  C. 
Augusta,  Ga. 
Macon,  Ga. 
Athens,  Ga. 
Meridian,  Miss. 


Savannah,  Ga. 
Birmingham,  Ala. 
Columbus,  Ga. 
Cordele,  Ga. 
Jackson,  Miss. 


Brunswick,  Ga. 
Montgomery,  Ala. 
Albany,  Ga. 
Rome,  Ga. 


Continuances 


The  following  continuances  were  allowed. 


To  Charleston  and  Port  Royal,  S.  C,  Savannah  and  Brunswick,  Ga.,  and 

Jacksonville,  Fla. 


The  continuance  of  class  and  commodity  rates  from  Louisville,  Ky.,  and 
Cincinnati,  Ohio,  to  Charleston  and  Port  Royal,  S.  C,  Savannah  and  Bruns- 
wick, Ga.,  and  Jacksonville,  Fla.,  and  points  contiguous  thereto  to  which 
rates  from  Cincinnati  and  Louisville  are  made  by  combination  on  the  above- 
named  destination  points  which  are  lower  than  the  rates  concurrently  ap- 
plicable on  like  traffic  to  intermediate  stations:   Provided — 

First.  That  on  the  route  from  Louisville  to  Charleston  (Louisville  & 
Nashville  Railroad  from  Louisville  to  Nashville;  Nashville,  Chattanooga  & 
St.  Louis  Railway  from  Nashville  to  Atlanta;  Georgia  Railroad  from  Atlanta 
to  Augusta;  Southern  Railway  from  Augusta  to  Charleston;  constructive 
mileage,  779),  the  rates  to  stations  between  Augusta  and  Charleston  affected 
by  combination  on  either  of  these  points  do  not  exceed  such  combination 
and  the  rates  to  other  stations  not  so  affected  are  not  increased. 

Second.  That  on  the  route  from  Cincinnati  to  Charleston  (Cincinnati, 
New  Orleans  &  Texas  Pacific  Railway  from  Cincinnati  to  Harriman  Junction; 
Southern  Railway  from  Harriman  Junction  through  Morristown,  Asheville,  and 
Columbia  to  Charleston;  constructive  mileage,  732),  the  rates  to  stations  be- 
tween Columbia,  S.  C,  and  Charleston  affected  by  combination  on  one  of 
these  points  do  not  exceed  such  combination  and  the  rates  not  so  affected  are 
not  increased. 

Third.  That  on  the  route  from  Louisville  to  Port  Royal  (Louisville  & 
Nashville  Railroad  to  Nashville,  Tenn. ;  Nashville,  Chattanooga  &  St.  Louis 
Railway  from  Nashville  to  Atlanta;  Georgia  Railroad  from  Atlanta  to 
Augusta;  Charleston  &  Western  Carolina  Railway  from  Augusta  to  Port 
Royal;  constructive  mileage,  758),  the  rates  to  stations  between  Augusta 
and  Port  Royal  affected  by  combination  on  one  of  these  points  do  not  exceed 

373 


374  APPENDIX 

«uch  combination  and  the  rates  to  stations  not  eo  affected  are  not  increased. 

Fourth.  That  on  the  route  from  Cincinnati  to  Port  Royal  (Cincinnati, 
New  Orleans  &  Texas  Pacific  Railway  from  Cincinnati  to  Harriman  Junction; 
Southern  Railway  to  Spartansburg,  S.  C;  Charleston  &  Western  Carolina 
Railway  from  Spartansburg  through  Augusta  to  Port  Royal;  constructive 
mileage,  753),  the  rates  to  stations  between  Augusta  and  Port  Royal  affected 
by  combination  on  one  of  these  points  shall  not  e.xceed  such  combination  and 
the  rates  to  stations  not  so  affected  are  not  increased. 

Fifth.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Savannah  (Louisville  &  Nashville  Railroad  to  Montgomery,  Ala.;  Seaboard 
Air  Line  Railway  from  Montgomery  to  Savannah;  constructive  mileage, 
829),  the  rates  to  stations  west  of  Helena  are  so  corrected  that  they  do  not 
exceed  the  rates  to  Helena,  and  that  the  rates  to  stations  east  of  Helena  do 
not  exceed  the  rates  to  Helena  by  more  than  5  per  cent  and  in  no  case  exceed 
the  combination  on  Savannah. 

Sixth.  That  on  the  route  from  Cincinnati  to  Savannah  (Cincinnati,  New 
Orleans  &  Texas  Pacific  Railway  to  Harriman  Junction;  Southern  Railway 
through  Asheville  and  Columbia  to  Savannah;  constructive  mileage,  756), 
the  rates  to  stations  between  Columbia,  S.  C,  and  Savannah  affected  by 
combination  on  one  of  these  points  shall  not  exceed  such  combination  and 
that  the  rates  to  stations  not  so  affected  are  not  increased. 

Seventh.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Bnmswick  (Louisville  &  Nashville  Railroad  to  Montgomery,  Ala.;  Atlantic 
Coast  Line  Railroad  from  Montgomery  to  Brunswick;  constructive  mileage, 
863),  the  rates  to  stations  between  Montgomery  and  Dupont,  Ga ,  except 
Bainbridge,  Ga.,  are  so  corrected  as  to  avoid  departures  from  the  long-and- 
short-haul  clause,  and  rates  to  stations  east  of  Dupont  are  not  higher  than 
the  combination  on  Brunswick. 

Eighth.  That  on  or  before  April  1,  1915,  on  the  route  from  Cincinnati  to 
Brunswick  (Cincinnati,  New  Orleans  &  Texas  Pacific  Railway  from  Cincin- 
nati to  Chattanooga,  Tenn.;  Southern  Railway  from  Chattanooga  through 
Rome,  Atlanta,  and  Macon  to  Brunswick;  constructive  mileage,  767),  the 
rates  to  stations  between  Macon,  Ga.,  and  Helena,  Ga.,  are  so  corrected  that 
they  do  not  exceed  the  present  rates  to  Helena,  and  the  rates  to  stations 
south  of  Helena  do  not  exceed  rates  to  Helena  by  more  than  5  per  cent  and  in 
no  case  exceed  the  combination  on  Brunswick. 

Ninth.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Jacksonville  (Louisville  &  Nashville  Railroad  to  River  Junction,  Fla.;  Sea- 
board Air  Line  Railway  from  River  Junction,  Fla.,  to  Jacksonville,  Fla.;  con- 
structive mileage,  960),  the  rates  to  stations  between  River  Junction,  Fla., 
and  Welborn,  Fla.,  are  so  corrected  as  to  avoid  violations  of  the  long-and- 
short-haul  clause  and  to  be  not  higher  than  the  rates  over  two-line  hauls  for 
like  distances  shown  in  Table  A,  and  the  rates  to  stations  east  of  Welborn  do 
not  exceed  the  combination  on  Jacksonville. 

Tenth.  That  on  the  route  from  Cincinnati  to  Jacksonville  (Cincinnati, 
New  Orleans  &  Texas  Pacific  Railway  to  Chattanooga;  Southern  Railway 
from  Chattanooga  to  Jesup,  Ga.;  Atlantic  Coast  Line  Railroad  from  Jesup 
to  Jacksonville;  constructive  mileage,  843),  the  rates  to  stations  between 
Jesup,  Ga.,  and  Jacksonville  do  not  exceed  the  combination  upon  either 
Brunswick  or  Jacksonville. 

The  carriers  operating  routes  from  Cincinnati  through  territory  on  and 
west  of  the  line  formed  by  the  Central  of  Georgia  Railway,  Birmingham.  Ala., 
to  Columbus,  Ga.,  and  the  Chattahoochee  River,  Columbus  to  Apalachicola, 
Fla.,  to  points  east  of  the  line  above  described,  and  carriers  op>erating  routea 
from  Louisville  and  other  lower  Ohio  River  crossings  through  territory  east  of 
the  said  line  to  points  west  of  such  line  are  authorized  to  continue  such  de- 
parture from  the  requirements  of  the  fourth  ser.tion  aa  may  be  naoewary  to 


READJUSTMENT  OF  RATES  37li 

preserve  the  existing  relationship  between  the  rates  from  Cincinnati,  Ohio, 
on  the  one  hand  and  the  lower  Ohio  River  crossings  on  the  other  to  the  terri- 
tories east  and  west  of  the  hne  above  described. 

The  carriers  operating  routes  from  Ohio  River  Crossings  or  points  north 
thereof  to  Meridian,  Miss.,  via  Jackson,  Miss.,  or  to  Jackson  via  Meridian, 
are  authorized  to  establish  and  maintain  the  same  rates  to  Jackson  and 
Meridian  as  are  concurrently  effective  at  the  same  points  via  direct  lines,  and 
to  continue  rates  to  points  between  Meridian  and  Jackson  the  following  dif- 
ferentials higher  than  to  Jackson  or  Meridian: 


Classes 

. .     1 

2 
3 

3 
3 

4 
2 

5 
2 

6 
2 

A 

2 

B 
3 

C 
2 

D 

2 

E 
2 

H 

2 

F 

Differentials  . . . 

..    3 

4 

The  Yazoo  &  Mississippi  Valley  Railroad  Company  is  authorized  to  con- 
tinue the  same  rates  from  Memphis,  Tenn.,  and  points  north  and  west  thereof 
to  Jackson,  Miss.,  via  their  lines  that  are  concurrently  effective  from  and 
to  the  same  points  via  the  Illinois  Central  Railroad  and  to  continue  for  two 
years  from  the  effective  date  of  this  order  higher  rates  to  intermediate  points: 
Provided,  That  on  or  before  April  1,  1915,  the  rates  to  intermediate  points  are 
so  corrected  as  to  not  exceed  the  rates  for  like  distances  shown  in  Table  A. 

To  Charleston,  S.  C,  Savannah  and  Brunswick,  Ga.,  Tampa  and 

Jacksonville,  Fla. 

The  continuance  of  class  and  commodity  rates  from  New  Orleans,  La.» 
to  Charleston,  S.  C,  Savannah  and  Brunswick,  Ga.,  Tampa  and  Jacksonville* 
Fla.,  and  to  stations  contiguous  thereto,  to  which  rates  from  New  Orleans 
are  made  by  combination  on  the  above-named  points  of  destination  which 
are  lower  than  the  rates  concurrently  appUcable  on  like  traflBc  to  intermediate 
points:  Provided — 

First.  That  on  the  route  to  Charleston  (Louisville  &  Nashville  Railroad 
from  New  Orleans  to  Montgomery;  West  Point  Route  to  Atlanta;  Georgia 
Railroad  to  Augusta;  and  Southern  Railway  to  Charleston;  793  miles),  the 
rates  to  points  between  Augusta  and  Charleston  not  affected  by  combination 
on  either  Charleston  or  Augusta  are  not  increased  and  the  rates  to  points 
between  Augusta  and  Charleston  which  are  made  by  combination  on  these 
points  do  not  exceed  such  combination. 

Second.  That  on  or  before  April  1,  1915,  on  the  route  to  Savannah 
(Louisville  &  Nashville  Railroad  to  Montgomery;  Seaboard  Air  Line  Railway 
from  Montgomery  to  Savannah;  656  miles),  the  rates  to  stations  west  of 
Helena,  Ga.,  are  so  corrected  as  not  to  exceed  the  present  rates  to  Helena, 
and  the  rates  to  stations  east  of  Helena  are  corrected  to  be  not  higher  than  5 
per  cent  in  excess  of  the  rates  to  Helena,  and  in  no  case  exceed  the  combina- 
tion on  Savannah. 

Third.  That  on  or  before  April  1,  1915,  on  the  route  to  Brunswick  (Louis- 
ville &  Nashville  Railroad  to  River  Junction,  Fla.;  Atlantic  Coast  Line  Rail- 
road from  River  Junction  to  Brunswick;  623  miles),  the  rates  to  stations  west 
of  Homerville,  Ga.,  are  so  corrected  that  they  do  not  contravene  the  provi- 
sions of  the  fourth  section  one  as  against  another,  and  in  no  case  exceed  the 
rates  over  two-line  hauls  for  hke  distances  shown  in  Table  A  and  east  of 
Homerville  in  no  case  exceed  the  combination  on  Brunswick. 

Fourth.  That  on  or  before  April  1,  1915,  on  the  route  to  Jacksonville 
CLquisville  &  Nashville  Railroad  to  River  Junction,  Fla.;  Seaboard  Air  Line 
Railway  from  River  Junction  to  Jacksonville;  612  miles),  the  rates  to  station! 
west  of  Lee,  Fla.,  are  so  corrected  that  they  do  not  contravene  the  provisions 
of  the  fourth  section  one  as  against  another,  and  in  no  case  exceed  the  ratea 
over  two-line  hauls  for  like  distances  shown  in  Table  A.  and  rates  to  stations 
•atk  of  I,e«  d»  not  escoed  the  combination  on  Jacksonville. 


376  APPENDIX 

Fifth.  That  on  the  route  to  Tampa,  Fla.,  (Louisville  &  Nashville  Rail- 
road to  River  Junction,  Fla.;  Seaboard  Air  Line  Railway  from  River  Junc- 
tion through  Baldwin  to  Tampa,  Fla.;  788  miles),  the  rates  to  stations 
between  Jacksonville  and  Tampa  not  affected  by  combination  on  either  of 
these  points  are  not  increased,  and  the  rates  to  stations  between  Jacksonville 
and  Tampa  which  are  made  by  combination  on  either  Jacksonville  or  Tampa 
do  not  exceed  such  combination. 

To  Augusta,  Ga. 

The  continuance  of  rates  on  classes  and  commodities  from  New  Orleans, 
La.,  to  Augusta,  Ga.,  and  to  points  contiguous  thereto,  to  which  rates  from 
New  Orleans  are  made  by  combination  on  Augusta  which  are  lower  than  the 
rates  concurrently  apphcable  on  like  traffic  to  intermediate  points: 
Provided — 

That  on  the  route  from  New  Orleans  to  Augusta  (Louisville  &  Nashville 
Railroad  from  New  Orleans  to  Montgomery;  Western  Railway  of  Alabama 
and  Atlanta  &  West  Point  Railroad  from  Montgomery  to  Atlanta;  Georgia 
Railroad  from  Atlanta  to  Augusta;  664  miles),  the  rates  to  stations  between 
Atlanta  and  Augusta  affected  by  combination  on  one  of  these  points  do  not 
exceed  such  combination  and  the  rates  to  stations  not  so  affected  are  not 
increased. 

To  Augusta,  Macon,  and  Columbus,  Ga.,  and  Montgomery  and  Selma,  Ala. 

The  continuance  of  class  and  commodity  rates  from  Cincinnati,  Ohio,  and 
Louisville,  Ky.,  to  Augusta,  Macon,  and  Columbus,  Ga.,  and  to  Montgomery 
and  Selma,  Ala.,  and  to  points  contiguous  thereto,  to  which  rates  from  Cin- 
cinnati and  Louisville  are  made  by  combination  on  the  above-named  points 
of  destination,  which  are  lower  than  the  rates  concurrently  apphcable  on  like 
traffic  to  intermediate  points:  Provided — 

First.  That  on  the  route  from  Cincinnati  to  Augusta  (Cincinnati,  New 
Orleans  &  Texas  Pacific  Railway  from  Cincinnati  to  Harriman  Junction; 
Southern  Railway  to  Spartanburg,  S.  C;  Charleston  &  Western  Carolina 
Railway  to  Augusta;  642  miles),  the  rates  to  stations  between  Spartanburg, 
S.  C,  and  Augusta  not  affected  by  combination  on  Augusta  are  not  increased, 
and  the  rates  to  stations  affected  by  combination  on  Augusta  do  not  exceed 
the  combination  on  Augusta. 

Second.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Augusta  (Louisville  &  Nashville  Railroad  to  Nashville;  Nashville,  Chat- 
tanooga &  St.  Louis  Railway  to  Atlanta;  Georgia  Railroad  to  Augusta;  650 
miles),  the  rates  to  stations  between  Atlanta  and  Augusta  are  so  corrected  that 
they  do  not  exceed  the  rates  over  two-hne  hauls  of  like  distances  shown  in 
Table  A. 

Third.  That  on  or  before  April  1,  1915,  on  the  route  from  Cincinnati  to 
Macon  (Cincinnati,  New  Orleans  &  Texas  Pacific  Railway  to  Chattanooga; 
Southern  Railway  through  Rome  and  Atlanta  to  Macon;  580  miles),  the 
rates  to  stations  between  Atlanta  and  Macon  are  so  corrected  that  they  do 
not  exceed  the  rates  over  two-hne  hauls  for  like  distances  shown  in  Table  A. 

Fourth.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Macon  (Louisville  &  Nashville  Railroad  to  Birmingham;  Central  of  Georgia 
Railway  from  Birmingham  to  Macon;  647  miles),  the  rates  to  stations  bet  veen 
Columbus  and  Macon  are  so  aligned  that  they  do  not  contravene  the  pro- 
visions of  the  fourth  section  and  do  not  exceed  the  rates  over  two-line  hauls 
of  Uke  distances  shown  in  Table  A. 


READJUSTMENT  OF  BATES  377 

Fifth.  That  on  or  before  April  1,  1915,  on  the  route  from  Cincinnati  to 
Columbus  (Cincinnati,  New  Orleans  &  Texas  Pacific  Railway  to  Chattanooga; 
Southern  Railway  through  Rome,  Atlanta,  and  McDonough  to  Columbus, 
Ga.;  618  miles),  the  rates  to  stations  between  McDonough  and  Columbus  are 
so  corrected  that  they  do  not  exceed  the  rates  over  two-line  hauls  of  like 
distances  shown  in  Table  A. 

Sixth.  That  on  or  before  April  1,  1915,  on  the  route  from  Louisville  to 
Columbus  (Louisville  &  Nashville  Railroad  to  Birmingham;  Central  of 
Georgia  Railway  from  Birmingham  to  Columbus;  547  miles),  the  rates  to 
stations  between  Birmingham  and  Columbus  are  so  corrected  that  they  do 
not  exceed  the  rates  over  two-line  hauls  of  like  distances  shown  in  Table  A. 

Seventh.  That  on  or  before  April  1,  1915.  on  the  route  from  Cincinnati  to 
Montgomery  (Cincinnati,  New  Orleans  &  Texas  Pacific  Railway  to  Chat- 
tanooga; Southern  Railway  to  Atlanta;  Atlanta  &  West  Point  Railway  and 
Western  Railway  of  Alabama  to  Montgomery;  667  miles),  the  rates  to  sta- 
tions between  Atlanta  and  West  Point  are  so  corrected  that  they  do  not  exceed 
the  rates  over  two-hne  hauls  of  like  distances  shown  in  Table  A. 

Eighth.  That  on  the  route  from  Louisville  to  Montgomery  (Louisville  & 
Nashville  Railroad;  491  miles),  the  rates  to  stations  between  Calera  and 
Montgomery,  Ala.,  affected  by  combination  on  Montgomery  shall  not  exceed 
such  combination  and  the  rates  not  so  affected  are  not  increased. 

Ninth.  That  on  or  before  April  1,  1915,  on  the  route  from  Cincinnati  to 
Selma  (Cincinnati,  New  Orleans  &  Texas  Pacific  Railway  to  Chattanooga; 
Alabama  Great  Southern  Railroad  to  Birmingham;  Southern  Railway  to 
Selma;  590  miles),  the  rates  to  stations  between  Birmingham  and  Maplesville, 
Ala.,  are  so  corrected  as  not  to  exceed  the  present  rates  to  Maplesville  and  the 
rates  to  stations  between  Maplesville  and  Selma  are  so  corrected  that  they 
do  not  exceed  the  rates  over  two-line  hauls  of  like  distances  shown  in  Table  A. 

Tenth.  That  on  the  route  from  Louisville  to  Selma  (Louisville  &  Nash- 
ville Railroad  to  Montgomery;  Western  Railway  of  Alabama  to  Selma;  541 
miles),  the  rates  to  stations  between  Montgomery  and  Selma  unaffected  by 
combinations  on  those  points  are  not  increased  and  the  rates  to  stations  so 
affected  do  not  exceed  such  combination. 

To  Birmingham,  Ala. 

The  continuance  of  lower  class  and  commodity  rates  from  New  Orleans  to 
Birmingham,  Ala.,  (Louisville  &  Nashville  Railroad;  415  miles)  than  the 
rates  concurrently  applicable  on  like  traffic  to  intermediate  points:  Provided, 
That  the  rates  from  New  Orleans  to  stations  between  Montgomery  and 
Birmingham  which  are  affected  by  combination  on  those  points  do  not  exceed 
such  combination,  and  the  rates  to  stations  not  so  affected  are  not  increa.sed. 

Denials 

The  petitions  to  continue  violations  to  the  following  points 
were  denied. 

To  Montgomery  and  Sdma,  Ala.,  and  Macon,  Columbus,  and  Albany,  Ga. 

The  continuance  of  lower  rates  from  New  Orleans,  La.,  to  Montgomery 
and  Selma,  Ala.,  and  to  Macon,  Columbus,  and  Albany,  Ga.,  than  to  inter- 
mediate points  is  denied,  effective  April  1,  1915. 


378  APPENDIX 

To  Albany,  Ga.,  and  Chaitanooga,  Tenn. 

The  continuance  of  class  and  commodity  rates  from  Cincinnati,  Ohio,  and 
Louisville,  Ky.,  to  Albany,  Ga.,  and  Chattanooga,  Tenn.,  which  are  lower 
than  the  rates  concurrently  applicable  on  like  traffic  to  intermediate  points 
is  denied,  effective  April  1,  1915. 

To  Atlanta,  Athens,  Cordele,  and  Rome,  Ga. 

The  continuance  of  lower  rates  on  classes  and  commodities  from  New 
Orleans,  La.,  to  Atlanta  (Louisville  &  Nashville  Railroad  from  New  Orleans 
to  Atlanta;  Western  Railway  of  Alabama  from  New  Orleans  to  Montgomery; 
Atlanta  &  West  Point  Railway  from  Montgomery  to  Atlanta;  493  miles), 
Athens  (Louisville  &  Nashville  Railroad  from  New  Orleans  to  Montgomery; 
Western  Railway  of  Alabama  and  Atlanta  &  West  Point  Railway  from  Mont- 
gomery to  Atlanta;  Seaboard  Air  Line  Railway  from  Atlanta  to  Athens; 
566  miles),  Cordele  (Louisville  &  Nashville  Railroad  from  New  Orleans  to 
Montgomery;  Seaboard  Air  Line  Railway  from  Montgomery  to  Cordele; 
488  miles),  and  Rome  (Louisville  &  Nashville  Railroad  from  New  Orleans  to 
Birmingham;  Southern  Railway  from  Birmingham  to  Rome;  542  miles) 
is  denied,  effective  April  1,  1915. 

To  Atlanta,  Athens,  Rome,  and  Cordele,  Ga.,  Birmingham,  Ala.,  and  Meridian 

and  Jackson,  Miss. 

The  continuance  of  lower  class  and  commodity  rates  from  Cincinnati 
and  Louisville  to  Atlanta,  Athens,  Rome  and  Cordele,  Ga.,  Birmingham,  Ala., 
and  Meridian  and  Jackson,  Miss.,  and  from  Cairo,  111.,  St.  Louis,  Mo.,  and 
Chicago,  111.,  to  Meridian  and  Jackson  than  the  rates  concurrently  apphcable 
on  like  traffic  to  intermediate  points  is  denied,  effective  April  1,  1915. 

It  will  be  noted  in  these  orders  of  the  Commission  that  the 
basing  points  only  have  been  singled  out.  It  follows,  however, 
that  these  adjustments  will  be  reflected  in  through  rates  from 
adjoining  territories,  such  as  from  Southwestern  Tariff  Com- 
mittee Territory,  Western  Trunk  Line  Territory,  and  Central 
Freight  Association  Territory,  by  reason  of  the  fact  that  through 
rates  are,  as  a  rule,  made  by  applying  the  rates  of  those  associa- 
tions up  to  the  base  points  plus  the  rates  from  the  base  points 
to  destinations.  Consequently,  if  the  maintenance  of  higher 
rates  to  points  intermediate  to  Chattanooga  is  denied,  it  neces- 
sarily follows  that  the  continuance  of  higher  rates  to  interme- 
diate points  from  points  basing  on  Chattanooga  is  likewise 
automatically  prohibited. 


APPENDIX  D 

READJT7STMENT  OF  RATES  TO  MISSISSIPPI  VAI^LEIT  POINTS 

AND  GULF  PORTS  FROM  EASTERN  AND  'WESTERN 

POINTS  OF  ORIGIN 

In  this  subdivision  will  be  found  the  orders  of  the  Interstate 
Commerce  Commission  affecting  rates  from  western  points  of 
origin  to  points  in  Mississippi  Valley  Territory  and  related 
points,  viz.: 

New  Orleans,  La.      Mobile,  Ala.  Pensacola,  Fla.  Tampa,  Fla. 

Gulfport,  Miss.         Memphis,  Tenn.    Greenville,  Miss.       Vicksbiirg,  Miss. 
Natchez,  Miss.  Meriaian,  Miss.     Jackson,  Miss. 

Continuances 
The  following  continuances  were  allowed. 

To  New  Orleans,  La.,  Mobile,  Ala.,  Pensacola,  Fla.,  GvJfport,  Miss.,  and 

Tampa,  Fla. 

The  carriers  are  authorized  to  continue  class  and  commodity  rates  from 
Cincinnati,  Ohio,  Louisville,  Ky.,  Cairo,  111.,  St.  Louis,  Mo.,  and  Chicago,  III., 
to  New  Orleans,  La.,  Mobile,  Ala.,  Pensacola,  Fla.,  Gulfport,  Miss.,  and 
Tampa,  Fla.,  and  points  contiguous  thereto,  to  which  rates  from  originating 
points  named  are  made  by  combination  on  the  above-named  destinations 
which  are  lower  than  the  rates  concurrently  applicable  on  like  traffic  to 
intermediate  stations:     Provided — 

First.  That  on  the  routes  from  Cairo  to  New  Orleans  (lUinois  Central 
Railroad  to  New  Orleans;  556  miles),  Mobile  (Mobile  &  Ohio  Railroad  to 
Mobile;  502  miles),  and  Pensacola  (Mobile  &  Ohio  Railroad  to  Mobile; 
Louisville  &  Nashville  Railroad  to  Pensacola;  606  miles),  the  rates  to  stations 
between  Jackson  and  New  Orleans,  between  Meridian  and  Mobile,  and  be- 
tween Mobile  and  Pensacola  affected  by  combination  on  one  of  the  above- 
named  points  do  not  exceed  such  combination  and  the  rates  to  stations  not 
so  affected  are  not  increased. 

Second.  That  on  the  routes  from  Louisville  to  New  Orleans  (Louisville  & 
Nashville  Railroad  to  New  Orleans;  809  miles).  Mobile  (Louisville  &  Nash- 
ville Railroad  to  Mobile;  670  miles),  Pensacola  (Louisville  &  Nashville  Rail- 
road to  Pensacola;  654  miles),  and  Tampa  (Louisville  &  Nashville  Railroad 
to  River  Junction,  Fla.;  Seaboard  Air  Line  Railway  from  River  Junction  to 
Tampa,  Fla.;  1,198  miles),  the  rates  to  stations  between  Montgomery  and 
Pensacola,  between  Montgomerv  and  Mobile,  between  Mobile  and  New 
Orleans,  and  between  Jacksonville  and  Tampa  affected  by  combination  on 
one  of  the  above-named  points  of  destination  do  not  exceed  such  combina- 
tion, and  the  rates  to  stations  not  so  affected  are  not  increased. 

Third.  That  on  the  route  from  St.  Louis  to  New  Orleans  (Illinois  Central 
Railroad  to  New  Orleans;  707  miles)  and  Pensacola  (Louisville  &  Nashville 

37P 


380  APPENDIX 

Railroad  to  PcnBacola;  761  miles),  the  rates  to  stations  between  Jackson  and 
New  Orleans  and  between  Mobile  and  Pensacola  affected  by  combination 
on  one  of  the  above-named  points  of  destination  do  not  exceed  such  combina- 
tion and  the  rates  to  stations  not  so  affected  are  not  increased. 

Fourth.  That  on  or  before  April  1,  1915,  on  the  route  from  St.  Louis  to 
Mobile  (Mobile  &  Ohio  Railroad;  657  miles),  the  rates  to  stations  between 
Meridian  and  Mobile  are  so  corrected  that  they  do  not  exceed  the  rates  for 
one-line  hauls  of  like  distances  shown  in  Table  A. 

Fifth.  That  on  the  routes  from  Cincinnati  to  Mobile  (Louisville  & 
Nashville  Railroad  to  Mobile;  784  miles),  New  Orleans  (Louisville  &  Nash- 
ville Railroad  to  New  Orleans;  923  miles),  Pensacola  (Louisville  &  Nash- 
ville Railroad  to  Pen.sacola;  768  miles)  and  Tampa  (Cincinnati,  New  Orleans 
&  Texas  Pacific  Railway  from  Cincinnati  to  Chattanooga;  Southern  Railway 
to  Jacksonville;  Seaboard  Air  Line  Railway  to  Tampa;  1,065  miles),  the 
rates  to  stations  between  Montgomery  and  Pensacola,  between  Montgomery 
and  Mobile,  between  Mobile  and  New  Orleans,  and  between  Jacksonville  and 
Tampa  affected  by  combination  on  one  of  the  above-named  points  do  not 
exceed  such  combination,  and  the  rates  to  stations  not  so  affected  are  not 
increased. 

Sixth.  That  on  the  routes  from  Chicago  to  New  Orleans  (Illinois  Cen- 
tral Railroad  to  New  Orleans;  920  miles),  Mobile  (Illinois  Central  Rail- 
road to  Cairo;  Mobile  &  Ohio  Railroad  to  Mobile;  866  miles), and  Pensacola 
(Chicago  &  Eastern  Illinois  Railroad  from  Chicago  to  Evansville;  Louisville 
&  Nashville  Railroad  to  Pensacola;  912  miles),  the  rates  to  stations  between 
Jackson  and  New  Orleans,  between  Meridian  and  Mobile,  and  between 
Montgomery  and  Pensacola  affected  by  combination  on -one  of  the  above- 
named  points  of  destination  do  not  exceed  such  combination  and  the  rates  to 
stations  not  so  affected  do  not  exceed  the  rates  for  like  distances  shown  in 
Table  A. 

To  Memphis,  Tenn.,  Greenmlle,  Vickshurg,  and  Natchez,  Miss. 

The  carriers  are  authorized  to  continue  class  and  commodity  rates  from 
Cairo,  111.,  Louisville,  Ky.,  Cincinnati,  Ohio,  St.  Louis,  Mo.,  and  Chicago,  111., 
to  Memphis,  Tenn.,  Greenville,  Vicksburg,  and  Natchez,  Miss.,  and  points 
contiguous  thereto  to  which  rates  from  the  above-named  points  of  origin 
are  made  by  combination  on  the  destinations  named  which  are  lower  than 
the  rates  concurrently  applicable  on  hke  traffic  to  intermediate  stations: 
Provided — 

First.  That  on  the  routes  from  Cairo  (Illinois  Central  Railroad;  170 
miles),  Cincinnati  (Louisville  &  Nashville  Railroad;  494  miles),  Louisville  (Illi- 
nois Central  Railroad;  391  miles),  St.  Louis  (Illinois  Central  Railroad;  322 
miles),  and  Chicago  (Illinois  Central  Railroad;  544  miles)  to  Memphis,  the 
rates  to  points  affected  by  combination  on  Memphis  do  not  exceed  such  com- 
bination and  the  rates  to  intermediate  points  not  so  affected  do  not  exceed 
the  rates  for  like  distances  shown  in  Table  A. 

Second.  That  on  the  routes  from  Cincinnati  to  Vicksburg,  Greenville, 
and  Natchez,  the  rates  to  stations  affected  by  combination  on  one  of  the 
above-named  points  of  destination  do  not  exceed  such  combination  and  the 
rates  to  intermediate  points  not  so  affected  do  not  exceed  the  rates  for  hke  dis- 
tances shown  in  Table  A. 

Third.  That  on  the  routes  from  Cairo,  Louisville,  St.  Louis,  and  Chicago 
to  Greenville,  Vicksburg.  and  Natchez,  the  rates  to  stations  affected  by  com- 
bination on  the  above-named  points  of  destination  do  not  exceed  such  combina- 
tion, and  on  or  before  April  1,  1915,  the  rates  to  intermediate  stations  not  so 
affected  are  so  corrected  as  not  to  exceed  the  rates  over  one-Une  hauls  for  lik«» 
distances  shown  in  Table  A. 


FREIGHT  RATES 

SOUTHERN  TERRITORY 


ONE  OF  A  SERIES  OF  TREATISES  IN  AN  INTERSTATE 
COMMERCE  AND  RAILWAY  TRAFFIC  COURSE 


ADDISON  R.  SMITH 

Third  Vice-President 
Louisville  &  Nashville  Railroad 


PART  4 

MISSISSIPPI  VALLEY  TERRITORY 

KENTUCKY-TENNESSEE  TERRITORY 

LONG-AND-SHORT-HAUL  CLAUSE 


Ia^ALLE  EljNSION  [|«VEI^ITr 


(  Non-Resident  Instruction) 
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